Clearing up my credit file

rachelheels

My partner and I have managed our finances badly for years. We have been guilty of ignoring things, and overspending. Our debt in £ not terms isn’t a huge amount, excluding car finance we’re talking low thousands, we earn £28k and £43k.

i have looked at both of our credit file son totally money. We want to be able to save a deposit an buy a house, and have a 3-4 year goal.

we are aware obviously our credit files will need to be good. From today, no payments on anything will be missed or even late. On his credit file there is a ccj for approx £8k in May 2017. It relates to a car finance agreement. The lender has gone bust and the car is literally worthless, sat in a storage unit Doing nothing, I realise it could be enforced at any time but in theory, if ti isn’t, will it just disappear in May 2023?

On my own there is a tsb bank account, it shows I owe £379. Default since 1st feb 2020. As this is the newest issue, this is the one I’ll hit first.

a huge amount of that balance, if not all, will be charges (not sure if that makes a difference?)

It shows it was updated  last on 31/07/20.

so simple question, what would you do to minimise the damage of this one?

repay in full? Argue to try and get the charges taken off and just repay any actual cash overdraft?

something else?

would really appreciate any help xx

Please don’t judge us, we have been daft, but we have had that moment recently where we realised, if we were sensible, we should have a secure nice home, not the money pit that is renting 

D3xt3r5L4b

Get everything cleared and paid off. Even the CCJ. You morally (and legally) owe the monies. 

rachelheels

If you knew the back story to the car related ccj you’d know why we are in no rush to pay. I’m not going over it but thanks for your helpful response.

if anyone else would like to help I would be grateful

[Deleted User]

You can ask for a settlement figure if you want. You may get lucky. However, it's late in the day to object to the charges that you originally agreed to.

Either way, getting it settled is the important thing

rachelheels

The ccj should drop off in 2023 if I’m right? We won’t have the deposit until later that year anyway so assuming it will drop off well just let it go


how about the default on my current account? Is there any hope of reclaiming charges that have contributed to it? Obviously these would just lessen the balance rather than be a cash payment but I’m happy with that I want the default removing ideally, is that even possible?

[Deleted User]

The reclaiming ship sailed years ago.  They won't remove the default but you may be able to negotiate a settlement figure 

Remember that you will need to declare the CCJ and outstanding debt if you don't clear it 

rachelheels

Why would we need to declare somethjgn that doesn’t show up on a credit report?

[Deleted User]

Because that's what you'll be asked by the lender and you'll attest that you're giving correct information and not committing fraud.

Defaults and and CCJs are manageable, but a fraud marker will put an end to any mortgage hopes.

rachelheels

Ok so the ccj should drop off in May 2023. Supposing I apply for a mortgage in August 2024, why on earth would I declare it? They wouldn’t be able to see it?

[Deleted User]

CCJs don't only appear on credit files.

So if you are intent on committing fraud, make sure that you don't apply to anyone who is, has been or could be connected in future to the original lender. Portfolios are bought and sold so do your homework before committing to the declaration.

rachelheels

Where else would they appear that could cause issues?