4 Defaults & 1 CCJ removed - how long for me to be mainstream credit worthy?

TheAnalyst

Hi all,
I've been browsing these boards for a while now but just registered today.
Usual story, I got myself into loads of debt back in my early/mid twenty's, 18 months ago my credit file looked something like this.


CREDIT FILE 18 MONTHS AGO

• CCJ Viking Direct - £400 outstanding
• Defaulted RBOS current account £2350 outstanding
• Defaulted Welcome Loan £2500 outstanding
• Defaulted Littlewoods account £250 outstanding
• Defaulted O2 mobile £260 outstanding

ITEMS REMOVED FROM CREDIT FILE IN LAST YEAR

• CCJ paid and got it removed on a tecnicality (I live in Scotland, CCJ's are for England)
• RBOS refunded charges and removed Default AND whole account from file
• Welcome accepted £1200 full and final and removed Default marker, replaced with late payments only
• Littlewoods account paid and dropped off file last month
• O2 paid and removed default marker, replaced with late payments only

CURRENT EQUIFAX CREDIT FILE

No CCJ's
Electoral register at home for 1 year

• Current Natwest NEW current account showing
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_light_0.gif[/IMG][B
• Current Natwest STEP account showing
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_light_0.gif[/IMG][B
• Current Vanquis Credit Card showing
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_light_0.gif[/IMG][B
• Current Littlewoods account showing
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_light_0.gif[/IMG][B
• Current 02 Mobile contract showing
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_light_0.gif[/IMG][B
• 02 Mobile contract showing SETTLED on 11/07 with
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_satisfy.gif[/IMG][B
• Welcome loan showing SETTLED on 06/03 with no history, just
  /B][IMG]https://www.econsumer.equifax.co.uk/consumer/uk/uib/images/EFX_UK/en_GB/icon_green_satisfy.gif[/IMG][B

CURRENT EXPERIAN CREDIT FILE

No CCJ's
Electoral register at home for 1 year

• Current Littlewoods account showing
  [ ]
• Current Natwest STEP account showing
  [ ]
• Current Natwest NEW current account showing
  [ ]
• Welcome loan showing SETTLED on 06/03 showing
  [ ]
• Welcome loan showing SETTLED on 01/08 with
  [ ]

The problem im finding is that i'm not being accepted for any mainstream credit and I really really want to apply for a Mortgage ASAP, was refused a 95% mortgage and umpteen loans/credit cards in the last few months... my bank wouldn't even give me a £1000 loan or an overdraft on my new current account, maybe due to all searches in the last year?

How bad is my file really and how long roughly would one have to make constant regular payment's for in order to be likely to be accepted for mainstream products such as decent mortgages or credit cards?

Thanks in advance for any assistance you can offer! :beer:

mandy.h_2

dont know how true it is but i cleared all my debt 3 yrs ago after a very similar picture to yours (remortgaged) and when i recently queried my experian credit report as all defaults were still but said settled they said they stay on for six years, however recently enquirewd about remortgage and the co said as defaults are over three years finance cos tend to ignore them

TheAnalyst

mandy.h wrote: »

dont know how true it is but i cleared all my debt 3 yrs ago after a very similar picture to yours (remortgaged) and when i recently queried my experian credit report as all defaults were still but said settled they said they stay on for six years, however recently enquirewd about remortgage and the co said as defaults are over three years finance cos tend to ignore them

Thanks for the reply, my position is slightly different in that I have been sucsessful in having ALL the default's and the CCJ actually fully removed from my file.

standupguy

You have done well getting the default markers dropped so it looks like there are no CCJ's or defaults registered now?

If so, this just leaves you with the payment profiles.

Until the individual profiles drop off your credit file Lenders will always see that you have had problems but they can also see that all of the current payments are being made on time which does make a case for you.

Your best position will be when all the late profiles have dropped off but initially you could see a bigger step forward when the Welcome loan profile drops off

If you put yourself in an Underwriters position who would be underwriting your loan what would they see?
They would see someone who has no CCJ's or defaults, someone who has had problems paying back credit but all of the indications at the moment that they are over that period and paying their liabilities on time?

So, not absolutely prime but not absolutely sub prime?

Your credit record is improving all the time and the longer you keep paying your liabilities the better your file will be.

Remember if you start applying for a lot of credit and therefore end up with a lot of credit searches then this can have a negative effect on your credit file

Also, you need to make sure that there is nothing detrimental at your previous addresses as these will searched as well beacause you have only been on the electoral roll at your present address for a year.

TheAnalyst

Cheers for the reply.

Yeah this is all the info from all past addresses for 6 years.

Unfortunately the 02 account was only settled in Nov 07 and the Welcome account in Jan 08 so they are going to be on there for a little under 6 years each still :rolleyes:

Would be good to know how mainstream lenders would look at this, if for example they say well he has late payment history but the last 12/18/24 months have been perfect so that's a reasonably low risk. I suspect it will be somewhere like 3 years though which is still a very long time to be paying high APR rates

MrsTinks

If you keep up the good work for the next 12 months then you might be able to get a loan or mortgage - a lot of that will depend on you showing that you can manage your finances and what the market does. If lending gets riskier and riskier then more banks will up their lending criteria - if things settle down then it'll be a "Buyers" market again.
A lot will depend on the financial climate and on your income/history.
Make sure you close all available credit that you don't use and also avoid any searches on your file for the next 6 months. If you've applied for loads of thinsg recently then I wouldn't try again for another 6 months...