Accounts Dropping off Credit File

freddie2020

Hi,

I have an account that was opened in 2007.

The first missed payment was recorded Feb 2015.

Does this mean the account and all the missed payments, should drop off my credit report Feb 2020? 
Seven years after the first recorded missed?

Thanks for the help.
Freddie

freddie2020

I meant drop off Feb 2022

[Deleted User]

No. It'll drop off 6 years from default or when the account was closed.

When did it default, assuming it did?

freddie2020

Yes was a Lloyds current with an overdraft.

That went over, interest and late payment fees added, then put onto a PayPlan DMP.

So not sure if it defaulted, as not like a credit card, with regular missed payments ect...

HoneyRoastedParsnip

You will see on the various credit sites as the missed payment (red) ticks along. Some agreements will result in red for every payment others class the account as closed from DMP start. 

freddie2020

I had a HSBC current account, that did Defalut - about 3 years ago.

So not sure why the current HSBC defaulted, and the LLoyds did not?

p.s what are the chances of asking HSBC to remove the default? Considering it was an overdraft, and not a loan / CC do did not really "miss" and payments.

Thanks for the help

freddie2020

HoneyRoastedParsnip said:

You will see on the various credit sites as the missed payment (red) ticks along. Some agreements will result in red for every payment others class the account as closed from DMP start. 

Yeah - the first missed record was Feb 2015 - so should drop off Feb 2022 - 7 years after the first missed recorded?

[Deleted User]

It's very unlikely the default would be removed, if it's an accurate reflection.

You also don't want it to be removed, or the account will be there for much longer, with all its missed payments. In your situation, defaults are your friends.

HoneyRoastedParsnip

freddie2020 said:

HoneyRoastedParsnip said:

You will see on the various credit sites as the missed payment (red) ticks along. Some agreements will result in red for every payment others class the account as closed from DMP start. 

Yeah - the first missed record was Feb 2015 - so should drop off Feb 2022 - 7 years after the first missed recorded?

I don't think so I think it is 6 years from settled/(whatever the other closed word is). Some of my accounts were put as 'closed' and frozen at green during DMP while making payments. One account wouldn't let me and was still open so recorded a missed payment every month until paid off and then fell off 6 years after going green (last payment).

freddie2020

Many thanks for the Advise.

In terms of building the credit score back up, wish to take out credit card / loan, and pay on time of course!!!   And at the same time the default and missed payments will get older.   So both should well work together.

What is best for building credit score?  A credit card / loan?

My thinking is loan?  As the monthly payments are more constant than a CC, where could spent one month and then not the next..
So shows have managed a regular payment over a period of time....

MaryNB

freddie2020 said:

Many thanks for the Advise.

In terms of building the credit score back up, wish to take out credit card / loan, and pay on time of course!!!   And at the same time the default and missed payments will get older.   So both should well work together.

What is best for building credit score?  A credit card / loan?

My thinking is loan?  As the monthly payments are more constant than a CC, where could spent one month and then not the next..
So shows have managed a regular payment over a period of time....

Credit score doesn't matter. You want to build up a good credit history. Lenders only see your history, not your score. They do their own internal scoring based in the data on your report.

You may have to justify why you need the loan. Also you will be immediately lumbered with a set amount of debt. No point in getting one if you don't need it. 

With a credit card your only debt is what you buy with it. If you don't need to use it one month just put one lot of shopping on it to show usage.
Keep the balance within approx 30% of the limit. Set up a DD for at least the minimum payment. Ideally you should pay it off in full when you receive the statement. A credit card is one of the easiest ways to build up credit history.

Avoid using an overdraft. It should only be for emergency use. You should use credit card for regular credit. 

If you are not already on it, get on the electoral register at your current address.