Default Expiring 26/05 - What can I expect?

Db33

I have a default on my file from Barclaycard dated 26th May 2020, so it will expire at the end of this month. What can I expect realistically? Will I get access to more mainstream credit? Ideally want to consolidate two higher interest loans with one at a better rate if it will be possible. I havent been in this situation before so grateful for any insight from fellow forumites.

fatbelly

Give it a month to make sure it's gone then do a soft search using the mse tool. See what comes up

https://www.moneysavingexpert.com/eligibility/loans-calculator/search/?featuresToEnable=needToKnowsBlock

eskbanker

https://forums.moneysavingexpert.com/discussion/6668116/default-expiring-26-05-what-can-i-expect

The removal of a significant negative factor from your credit files doesn't in itself say anything about the rest of what's on them, so the response of mainstream providers will still depend on the scale of your debts and how you're managing them.

CliveOfIndia

As far as it goes, once the default has dropped off then that's one less negative marker for lenders to take into consideration. But, as mentioned above, any lender will still look at your credit history in its entirety and make up their own mind, based upon their own unique lending criteria.

"Ideally want to consolidate two higher interest loans with one at a better rate if it will be possible". If you can refinance to a lower rate over the same term then of course it's a sensible option. If the term of the new loan is longer that the existing ones, just make sure you do the sums - monthly payments may be lower, but you could possibly end up paying more overall.

Also bear in mind that a lender will view the new loan as being in addition to - not instead of - the existing loans, simply because they have no way to force you to use the new loan to clear the old ones. They therefore have to take the view that you'd have twice the debt you do now, and factor that into their calculations - which may mean they offer you a less-than-ideal APR. It may not be an issue, but it's just something to be aware of.

Brie

Take the time to make sure your credit history to ensure things are nice and tidy. And also to make you a better risk to potential creditors.

So are you registered to vote? (makes you look stable/reliable apparently) What other credit are you using? Do you have monthly paid motor/home insurance? Phone contracts? Catalogue credit? Any CCJs? Cancel any access to credit you have but don't want or use.

If you want to get your debts better under control you might pop over to the debtfree wannabe board and post a statement of accounts (see below in my signature) and get some advice on how to tighten up your budget.