Best way forward from bad debt...

ImGettingThere

Years ago I amassed quite a chunk of debt. 
That turned into defaults as I moved to being self-employed and struggling with fluctuating income. 
That is now all paid off but, some of my defaults are still within the 6-year mark so, are showing as negatives against me. 
However, I'm being shown my score is almost being negatively impacted because as of right now, I'm not using any form of credit. So, zero utilisation and zero history showing.

I don't have any credit cards or loans and everything is paid off so, I've been wondering IF this is something I need to address and if so, what is the best way forward? 
My other half and I have a deposit for a house so, we'd love to apply for a mortgage once the world settles back to 'normal' and I'm concerned these 'red flags' as they're shown could impact it.
Will they? 

Appreciate any guidance. 

[Deleted User]

You don't have a score, it's a meaningless number generated by the CRAs to try and get you to waste money on buying their "improvement" services. Get a credit card, pay off in full every month, same with a mobile contract, ensure you are on the electoral roll and leave it either for 2-3 years after or until the negatives drop off after 6 years from creation

MovingForwards

It's the credit history financial institutions see and use when assessing applications.

There is life after debt and now you need to start showing you're responsible with credit. Apply for a sub-prime credit card such as capital one, marbles, aqua or if your own bank let you see in advance if they will offer you a CC go with them.

Put shopping, petrol on your CC and pay it on in full each month when the statement comes out, that shows a positive on your credit history.
Keep the money you would normally spend on shopping and petrol to one side, that way you don't fall into the trap of borrowing from the future you.

Make sure you're on the electoral roll, some utility companies report to credit reference agencies, mobile phone companies tent to, that's that's also positive history being built.

Three years after defaults were put on, the damage reduces.

Main thing is to demonstrate the history is just that and also get an emergency fund together.

sourcrates

Please don`t get into more debt at the behest of a credit reference agency and their clever marketing.
Most CRA`s are also credit brokers, who use the vanity of the "credit score" to make money from you, by flogging you loans and credit cards, don`t be a lemming.

dranzer01

MovingForwards said:

It's the credit history financial institutions see and use when assessing applications.

There is life after debt and now you need to start showing you're responsible with credit. Apply for a sub-prime credit card such as capital one, marbles, aqua or if your own bank let you see in advance if they will offer you a CC go with them.

Put shopping, petrol on your CC and pay it on in full each month when the statement comes out, that shows a positive on your credit history.
Keep the money you would normally spend on shopping and petrol to one side, that way you don't fall into the trap of borrowing from the future you.

Make sure you're on the electoral roll, some utility companies report to credit reference agencies, mobile phone companies tent to, that's that's also positive history being built.

Three years after defaults were put on, the damage reduces.

Main thing is to demonstrate the history is just that and also get an emergency fund together.

even when  iapply for those type of cards it says 'unfortunately' and my credit/score has gone up so im confused there
(unless im filling in the application wrong i.e. address history etc)

macman

See the second post above: your credit score is fictitious and lenders don't even see it. What matters is your credit history. If you are being refused for sub-prime cards then clearly you are seen as a high risk. Also sounds like you have been making multiple applications, which does not help, as they will show up.

[Deleted User]

You will notice your score automagically goes up when they want to offer you a loan or a credit card and then goes down again the following month. My so called Clearscore dropped 37 points this month as I have no balance on my CC. I have also seen it go up when a hard search has been conducted. When I printed out a copy of my file for the mortgage broker, he said don’t bother printing the score as I don’t need it. That score just feels like it is plucked out of thin air and there is no science behind it. It is whatever the CRA want it to be.

fatbelly

Your defaults are still less than 6 years old so yes this will impact the range of products that you are offered.

There's nothing you can do except wait, continue to save and make sure you do not get any late payment marks or worse on your present accounts.