Help to settle some debts

fairmorn308

Good evening am a newbie here

1)I have been a silly guy and went overdrawn and got bank charges on 3 bank accounts - they werent current accounts just basic accounts. the debt is still outstanding but the accounts are now closed.

I just wanted to know if the debt from the above will affect my credit rating. I have got letters from debt collectors regarding the debt?

2) does a court summons affect ur credit rating aswell?

3) I have a on going credit card debt to settle and whats the best way to go about it i have read on the forum is to send them a letter of full and final payment offer?

4) When i was younger i was silly and took out HP and a loan and couldnt keep up with payments and fell behind but both the loan and the HP was settled in full within the 1st year of them both been taken out.

5) When i was 19 all debts were paid off and i was able to get a mortgage and due to becoming long term ill i fell behind on payments and i ended up moving out my flat and my brother moved in and he didnt bother keeping up ne payments so it went againest my name. Now the mortgage was tranfered into my Dads name.

6) I got a CCJ wen i was 18 but that was paid and satisfied.

7) I am 22 now and just about to get a big cash lump sum thru and want to clear all the above / credit card / 3 bank accounts / phone bill

8) I am going to get in contact with the credit agencys closer to the time and see exactly what i owe and clear all debts but my next question is What is the best way to start improving my credit rating. I havent applied for anything nearly a year now as i know dam fine i wouldnt get accpeted.

sorry to drag on but i hope it makes sence and some of you guys could beable to point me in the right direction

Thank you

Karma67

Hi and welcome to MSE!!

Well to get to you last question....all these defaults will show on your credit reports for 6 years...so the ones that occured when you were 18 will still be on there til you 24.....

As for improving your credit rating....firstly pay off the debts when you get this lump sum, this will at least show the defaulted files 'satisfied/settled' on your credit report.

I think the only way to improve your credit worthiness will be to get a credit card and use it regualrly and pay it off fully every month! Capital One do a guaranteed card, which to be honest, i think is the only company that will touch you and offer u credit, from what you have told us about your past credit probs. They offer people with poor/bad credit history a card, usually with low balace but high APR 29.9%! but if you pay it off in full each month no interest is charged You may also have to pay a security deposit from £49-£200......not everyone does tho.

So, to sumarize, to improve you credit rating...get a CC, use is very wisely, pay off minimum or even better fully EVERY month and slowly your credit rating should improve.


HTH

Karma67

Also:

fairmorn308 wrote:

I just wanted to know if the debt from the above will affect my credit rating. I have got letters from debt collectors regarding the debt? YES

2) does a court summons affect ur credit rating aswell? YES

3) I have a on going credit card debt to settle and whats the best way to go about it i have read on the forum is to send them a letter of full and final payment offer? WORTH A TRY, SOMETIMES THEY WILL KNOCK OFF 30%


5) When i was 19 all debts were paid off and i was able to get a mortgage and due to becoming long term ill i fell behind on payments and i ended up moving out my flat and my brother moved in and he didnt bother keeping up ne payments so it went againest my name. Now the mortgage was tranfered into my Dads name. WILL STILL BE ON UR CREDIT REPORT AS BAD DEBT

6) I got a CCJ wen i was 18 but that was paid and satisfied. WILL BE ON UR CREDIT REPORT TIL UR 24

Hope this helps...sorry it's not 'happy' news!

ceegee

This is intended to be a constructive comment.........please realise how very fortunate (in a financial sense) you have been to be receiving this large financial sum. Learn your lesson and be more sensible in the future because there aren't always going to be large amounts of money coming your way to bail you out of any future financial messes!

Grasp this opportunity of a fresh slate.

Lecture over! :cool:

fairmorn308

thank you for your replies

1st thing is This large cash sum that i will get will clear all debts that will affect my credit rating and i will be debt free and want to start to sorting out my life but 1st with sorting my debts.

I do know they will affect my record for 6 yrs but better to trying to improve it than ignoring it and expecting it to go away.

Due to my previous illness etc i wasnt in jobs that paid well or in them for a long time but now am back on my feet and in a good job which i really enjoy and pays well i am in the position to sort out my life and get things back on track the best i can so in a few yrs time buy a house etc etc

fairmorn308

Just a little update

The lump sum will be with me in a few weeks then i can start getting things back on track.

I am looking to start a fresh with a new bank and thinking of Lyolds TSB As there in my home town. Just looking for a simple cash account with a debit card, any ideas?

fairmorn308

UPDATE

all letters have been wrote to crediters and will be posted 2mo and will just have to sit back and await there replies to the letters.

One of the problems is one of the credit card debt is already with capital one and i am 99% sure they have canceled my account as they have passed the debt over the debt collection agency.

Would i beable to re-apply again once debt is clear?

fairmorn308

What does everyone think about re-applying for the cap one card?

Xbigman

I think its highly unlikely anyone you have had problems with will touch you this side of 2011, which is when your credit record will clear.

As for the concept of getting another credit card, are you mad?

You've had some good fortune that has cleared your debt with minimal effort. Now, having run up debts once, you want to start down that road again. Have you actually learnt your lesson? Can you be disciplined? If so why do you want a cap1 card? You want a good cashback or rewards card with any old interest rate you like. Why? Because the interest doesn't matter as you'll pay it off every month - WON'T YOU.
Regards



X

fairmorn308

calm down

all the debts has happened last yr etc not this yr and i have learned from my mistakes and i want to try and improve my credit rating. all i asked was best way to improve it once all debt is clear never asked for u to give me the birds and the bees about it m8

debtbuster2K5

Fairmorn308,

To be fair, I think Xbigman was just expressing that you are fortunate to be in a position to clear your debt reasonably quickly. Your post implied that you wanted to start getting cards again etc. The tone of Xbigman`s post is to ensure that you dont get yourself into a bad position again and that you become a savvy consumer and get the best deals in the marketplace.

Unfortunately, many people get themselves out of trouble and all to quickly get back in it with all the poor decisions that were made in the first place. The fact you are getting the lump sum means that you will not go through a slog whilst dealing with your debt, and not neccessarily learn vital lessons along the way.

Regards