Just paid off credit card default - what next? 3 August 2022 at 11:33AM in Credit file & ratings 4 replies 147 views

mangobloom

Hi all,

I've finally paid off a credit card default and the account has been partially settled. My credit score is obviously not great especially as I have two of these defaults aroundthe same time end 2018/beginning 2019.

I want to start building my credit. I'm a much wiser person now in my mid 30s and better with money. Is it wise to apply now for a credit building credit card straight away and pay it IN FULL every month now my debt accounts have been settled? Or do I wait? I don't want a hard search rejection on my file!

[Deleted User]

You can't have a hard search rejection on your file. Just a hard search.

You could apply now or later. Set up a DD for full payment. And ignore your credit score as it has no meaning in terms of your credit worthiness.

macman

Lenders do not even see your fictitious credit score, it's the history that matters.

mangobloom

@[Deleted User] @macman thank you both for the prompt reply. That's good to know. I have other accounts on my file now like EE and my utilities. So do I just carry on as normal until the 6 years are up or would you suggest getting a credit card to show some extra history between now and then? I want to apply for a mortgage when the 6 years are up.

[Deleted User]

If you wait until the 6 year mark, you'll have a very thin file.

The idea is to continually build good history, as the bad history gets older. Getting a card is the easiest way of building history.

Remember also that you don't need to wait until 6 years to get a mortgage.