Took a big hit on my credit score - I need advice please

ilikemalk

Hi guys.

When I was 18 I had an overdraft that I couldn't pay. My mum found out and helped me out by setting up a payment plan she said she would pay.

Turns out she stopped and on the 1st of December the bank sold the debt to PRA group.

I called up PRA group and paid the amount in full. Now as I look at my credit report it has been updated with the default from the bank and from PRA group.

Not once have I received contact from Barlcys telling me I had missed payments, I would have paid instantly.

Also, why do i now have two defaults from Barclays AND PRA group? The default from the PRA group is marked 29th May 2015. Does this mean i was a couple of months awya from it being statute barred but because i've paid it stays on my file for 5 years?

I have been checking my credit report religiously for years and not once has this shown up.

Even though I paid this off in full will it remain on my credit score for 5 years?

I am about to qualify for a new job and wanted to move out, is this going to seriously hurt my chances of renting?

[Deleted User]

You should only have one default for any given account. The later one should be removed.

The earlier one stays on your files (not score) for 6 years.

sourcrates

Barclays sold the debt to PRA group.

The Barclays entry should show the default date, and be marked as settled, with a zero balance, the PRA entry, should show the same default date, and either the outstanding balance, or the settled balance, whichever is appropriate.

Its just two entries for the the same default.
It will show on your file for 6 years not 5.

macman

Your credit score is a fictitious number that lenders don't even see. It's your history that matters.

Not all potential LL's will credit check, but if they do, it won't help.

Isn't your grievance here with your mum for not telling you she would no longer pay your debts, rather than the CRA or creditors?

AbundantBudget

If your default is marked on 29 May 2015, it will drop off on 29 May this year. Just few months to wait and you will have a clean credit report.

ilikemalk

macman said:

Your credit score is a fictitious number that lenders don't even see. It's your history that matters.

Not all potential LL's will credit check, but if they do, it won't help.

Isn't your grievance here with your mum for not telling you she would no longer pay your debts, rather than the CRA or creditors?

You could say my issue is with her but ultimately it was my carelessness that caused it.
I'm wondering though, it's only just appeared after I paid the balance in full to PRA group. Default date is marked may 2015. Does that mean in 2 months time it will clear from my credit file?
I just don't understand how it has only now appeared on my file after all this time. 

And with regards to the history, this appearing now is this likely to cause me problems renting?

ilikemalk

sourcrates said:

Barclays sold the debt to PRA group.

The Barclays entry should show the default date, and be marked as settled, with a zero balance, the PRA entry, should show the same default date, and either the outstanding balance, or the settled balance, whichever is appropriate.

Its just two entries for the the same default.
It will show on your file for 6 years not 5.

6 years from now? or 6 years from the default date of may 2015 (even though it has only now appeared on my file)?
Once these defaults are removed in 2 months will my score be back to normal? I worked really hard and got it to 972 on experian, i haven't missed any bills and i've been responsible with my lending. 

[Deleted User]

Once the default drops off , your score will drop as it's a big change.  

But as you might have heard, that's not a problem.

You need to be responsible with your borrowing, not your lending. Check all three files to see what's actually appearing.

ilikemalk

AbundantBudget said:

If your default is marked on 29 May 2015, it will drop on 29 May this year. Just few month to wait and you will have a clean credit report.

I am just fuming it has only now appeared. One letter from Barclays in the last 5 years and i would have paid the balance off in full. 

ilikemalk

Deleted_User said:

Once the default drops off , your score will drop as it's a big change.  

But as you might have heard, that's not a problem.

You need to be responsible with your borrowing, not your lending. Check all three files to see what's actually appearing.

My score will reduce further after it DROPS off?

[Deleted User]

Yes. It measures change, not credit worthiness. 

But no one see it but you, so it's all good.  You can tell people you have a high score if you want - no one will ever know.