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Help with credit score and debt

edited 30 November -1 at 1:00AM in Credit File & Ratings
3 replies 597 views
Joseph_shaperoJoseph_shapero Forumite
2 posts
edited 30 November -1 at 1:00AM in Credit File & Ratings
Hi guys, in a bit of a dilemma and wondering if someone out there can help me find a solution, I have a default on my credit score from car finance which is £11 000. I haven’t heard anything back from company in about 3 years, and I haven’t paid anything into either, I feel this is affecting my credit score as I can’t seem to build it currently sitting st 526 on Noddle. I have an over draft and 2 credit cards but have just got a good job with decent pay and looking to get myself back on track, I’ve been accepted for a trust deed on this debt but what’s scaring me is I can’t (so the woman said) won’t be able to build my credit for 4 years while in this and after that rest of your debt gets wiped and you start fresh, I’m maybe hoping there is a way of doing this without ruining my credit as 4 years is a long time to wait! Any advice appreciated cheers!

Replies

  • zx81zx81 Forumite
    28.4K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
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    If you enter into any sort of arrangement, trust deed or default, it will reflect very poorly on you.

    It will drop off 6 years from default, and the sooner you settle it, the better.

    In the meantime, use your credit cards wisely - clearing in full each month - and stay out of your overdraft.

    The score isn't a reflection of your credit worthiness, so ignore that when it drops again as you clear the debt.
  • Ahhh ok but so you think entering trust deed would make things worse? And is it true you can’t build your credit while in one? Also would maybe the best option be contacting debter directly to arrange a payment plan be better option?
  • zx81zx81 Forumite
    28.4K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
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    No, the trust deed won't make it worse - the default has done the damage. Now it's about paying it back.

    You can rebuild your credit worthiness while in a deed. Every day, your default gets older, and you are hopefully using your cards correctly. All of that will help.

    As long as you're repaying (and as quickly as possible), do it however you want.
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