Score advice

savvylondoner

There is a default on my file from May 2018. It looks like my payment info on cards only goes back 4 years. Will the default drop off in June? Or at least score go up as it’s going to be more than 4 years old? I now have just under £3k on 0% and am overpaying. But was previously paying hideous interest on £50k+. Any advice/thoughts on when my score may lift??

sourcrates

If your default is dated May 2018, then it will drop off your file in May/June 2024, its six years history in total in the UK.

Your "score" will go up or down with even the slightest change of any kind, but the good news is no one see`s it but you, and its never used in lending decisions.

What is your aim here, why do you want a score increase ?
Good credit management leads to good credit history, which is all that is important.

savvylondoner

Thanks - the only reason is I would like to apply for a mortgage in the near-mid term

Ebe_Scrooge

If you want to increase your score, I've got plenty of points you can have if you want them.  Yes, as above, your score is nothing more than a useless marketing gimmick.  Usually it will drop in response to any change in your credit circumstances, whether good or bad, and will slowly rise over a period of stability.

What really matters is your credit history - a lender is looking to see a pattern of responsible borrowing and repayment.  A single default from 2018, whilst not ideal, is not the end of the world.  Defaults will drop off your file after 6 years, but their impact diminishes over time - especially if they're superceded by plenty of positive history.

In terms of applying for a mortgage, probably the single biggest thing you can do is go all-out to clear any existing debt before you apply.  If you can get rid of that £3K debt, you'll be in a lot better position (yes, you're score will more than likely drop once you pay it off, as it's a change in your credit circumstances, but that matters not one jot).  Other than that, avoid opening any new lines of credit in the run-up to your mortgage application - whether credit cards, loans, buy-now-pay-later, whatever.