Very bad credit- trying to get in tack

Dahliaa

Hello

my partner has very bad credit, 3 defaults from July 2018 for about 13k together, one of them turned into CCJ in Jan 19, this was over 5k but now been paid off to 3k. Rest is unsatisfied for now. 
He also has another Capital one credit card which is in good standing since 2017 with tiny £200 limit.

This all is huge issue now as we are looking to take out a mortgage.

I know the old defaults with need fixing but in terms of moving forward, of building good/better history what is the best strategy?

I’m thinking to take out another credit card- Aqua has pre-approved him at 59.9% apr, but I guess the rate would not matter if he pays in full each month, assuming he would also get a tiny limit so this could be used for odd charge just to keep it going and in good standing.
I’m thinking to have 2 cards and manage them good over time will be beneficial eventually.

Is it a good idea to take out the Aqua card or should he wait?

[Deleted User]

Another card or three is always useful as a back up. 

However. settling the defaults would be far more beneficial, as without settling them, getting a mortgage is going to be extremely difficult to impossible.

Jamesyb123

That CCJ is still quite recent but when you want to look at a mortgage speak to a specialist broker who maybe able to help 

yksi

You didn't ask, but I think you should be very wary of even thinking about a mortgage before both of you do some serious dissection of your finances. How does someone end up defaulting on 13k worth of debt? Yes, there are probably valid reasons, but you need to address them, and not just by saying "well he won't do that again" - you need a plan on "what to do if disaster hits" because if another disaster hits after you have a mortgage, 13k of unpaid bills could lose you the house. It would also wreck your own credit history - which right now might be safe from his - but once you own a house together you're tied financially for quite a while.

You need to start with a plan on how to repay the remaining 11k of debts and after that you will need to build yourself a safety net to protect you from a future disaster. It really will be best done with a complete overhaul of how you spend, and how you even think about money. Start with the Debt Free Wannabe board in these forums. If you are serious about getting on track, you should also start reading Mr Money Mustache. You can do this. And he will feel much more positive about money once he learns how to manage it well.

[Deleted User]

I have to agree with the other posters, settling defaulted accounts will be way more beneficial than getting a new credit card. I personally think he should wait and just get his debts paid and not focus on borrowing more credit until that is done.

RelievedSheff

You are very unlikely to get a mortgage with recent unsatisfied defaults for such large amounts and a recent unsatisfied CCJ for a large amount.

As others have said you would be much better off paying down the debts and waiting until his credit file is in better order.

There is no magic wand. Time is the great healer with credit files. Time and paying down the debts.

Personally I wouldn't bother with the additional credit card. It is unlikely to make any significant difference at this moment in time.