Accounts Dropping off Credit File

freddie2020

Thanks for your response, much appreciated.

The idea was to take out the loan, and not spent it. Just pay it off with the loan, and the cost being the interest.

Would that create a better credit history, than using a credit card under 30% limit, and paying off in full each month?

[Deleted User]

Taking a loan just tells lenders you're short on money. Any history you need to pay for is not a great history.

Use a credit card and clear in full.

freddie2020

Got Accepted for a Capital One  Credit Buidler £1500 limit.

Going to try to spend under 1/3 balance per month and pay off in full.

If I get perfect history of 12 months under my belt.
Would the chances of getting a mortgage be good?

Even with that default on the file (will be 4.5 years old in 1 year)

I know their are other factors, but in terms of credit history

Thanks

[Deleted User]

You'll have a reasonable chance of getting high street rates, assuming the default has long since been settled.

There's no need to stay under 1/3 of your balance as you're clearing in full. Just stay under the limit.

freddie2020

Thanks,

The defaulted account has not been settled, still paying it off in a DMP

So if pay it off.  The default will obviously still show as under 7 years, old.

But it will show as account selected?  Which is obviously better.

Thanks

jonesey1985

freddie2020 said:

Thanks,

The defaulted account has not been settled, still paying it off in a DMP

So if pay it off.  The default will obviously still show as under 7 years, old.

But it will show as account selected?  Which is obviously better.

Thanks

What's that then?

It's 6 years from the date of default or the account being closed, not 7.  And it's not from the first missed payment as has already been mentioned.  If it's not defaulted it won't be going anywhere any time soon.