Help improving credit score with a defult

tillydimond

So i have been having a nightmare with my credit score I was hoping for ways to improve it and a rough idea of how long it will take. So firstly I have a defult on my account, a few weeks ago I get a letter from dept collector saying I owed them money they have taken on from EE and paid it. Basically, 3 years ago I finished my EE contract contacted them on the phone to say I now want to end it, assumed everything was sorted so cancelled my direct debit to them. However they had a final bill of £30. I had a new phone and new number by this point and any bills would have been sent to my old uni adress. So I literally had no idea about this bill untill I got it which is now a defult on my credit report. I called up the debt company and told them my situation how I didnt know, they have put a complaint through for me to see if i can get it removed but its not looking likely. I also have one late payment to 02 again thought my contract had finished did the same as last time (before I knew of the final payment I now know better) I paid that as soon as i got the letter so that should show soon on my credit report soon. I have no debts, no overdrafts and quite a bit of savings however, i dont have any credit history really. So the steps I have taken is a new contract phone for a bill to come out monthly on time regularly, monthly car insurance and i have got my self a credit card to put my fuel on every months and pay off straight away. I just need advice on how I can improve my credit and if I will ever be able to get a mortgage if my defult doesn't get removed. That will be on there for 6 years. Im so streseed and feel like I have let my partner down as we are ready to buy a house. And I was meant to be the one good with money.

[Deleted User]

The main thing is to get the default settled.  You now need to build some decent credit history. It's late in the day to be starting, but now is better than later.

Set up DDs for all your payments so you don't miss any more and never cancel them until long after the contract has finished.

Don't pay for your car insurance monthly - pay the year up front. Don't tell lenders you don't have enough money for your car insurance.

Don't pay off your credit card whenever you make a purchase.  Wait for the statement then clear in full.

A large deposit will help to overcome some of the risk you present mortgage lenders. Use a broker experienced in adverse credit.

And finally, of course, remember your credit score has nothing to do with your credit worthiness, so don't worry when it plummets as you become less risky to lenders. Lenders only want to see how you manage your accounts.

Jamesyb123

Also when was the default registered? If it was a while ago you might still be able to get a mortgage with a specialist broker? 

Kiwistrawb1990

Speak to a broker - post on the mortgages forum not here.
There's a whole host of high street lenders who don't take into account telecoms defaults I.e they don't count. 

RHF2020

One late payment won't make a big difference. The default is the key one to tackle. Raise a complaint with O2, and try to reason with them that recording a default is unfair given the circumstances.

Ofcom have a fairness for customers framework (see link below). Read it carefully and you'll see the point about actions having a fair and proportionate impact on customers. Even if they were contractually entitled to record the £30 as a default, I don't think they can say it is fair and reasonable to keep it on record if you raise it with them. 
https://www.ofcom.org.uk/phones-telecoms-and-internet/information-for-industry/policy/fairness-for-customers

If they don't agree with you, after 8 weeks you can refer the complaint to either Ofcom or CISAS (it differs between telecoms providers), who I would expect to rule in your favour in the circumstamces.

DCFC79

Dont cancel direct debits unless you have been told to do so.
Why would you not port your number to the network ?