I have recently finished a DMP and I am finally starting toget my finances back on track and I am hoping for some advice on improving my credit rating.
My situation is as follows:
The defaults registered on my account are due to fall off in August of next yea
rand I am starting to put together a deposit for a mortgage.
With this in mind I am trying to do whatever I can to improve my credit rating.
I have recently been successful (with the help of the FOS)
in getting a default retrospectively added to an account that was previously marked with AR markers
for the entire period of the DMP and this will now disappear along with the other defaults.
After the defaulted accounts disappear,
I only have one concern relating to a Lloyds Bank Credit Card.
The account was never defaulted,
as the payments under the DMP were close to the contractual payments
Overtime the payments made through the DMP started to cover the minimum payments
and Lloyds started recording the account as being up to date (although charges and interest were frozen after some time).
The records on my Credit file read as follows:
Realistically, it will be January 2017 before I would be looking to apply for a mortgage
and by then the only negative records remaining would be the nine late payment markers in 2011.
The current available balance shown for the card is £7850
(although this is not actually available, as the facility has been withdrawn),
the outstanding balance is £1432 and
I am paying £35 per month (which is in excess of the minimum payment) in order to keep building the positive payment history.
My questions are:
1. Will the 9 late payments be enough to scupper a mortgage application, considering their age?
2. Would it be better to request a retrospective default and lose the payment history?
3. Should I reduce the credit limit?
4. Is there anything else I can do to improve my position?
Once the other defaults disappear,
the only other records remaining on my file will be as follows:
- Phone bill split in to two sections
- a loan for the purchase of the handset and then the monthly tariff payment
– Both are fully up to date and show no negative marks.
The monthly tariff payments go back 6 years and the loan for the phone 12months since I last upgraded my phone.
- Bank overdraft of £900
– fully up to date and recorded as a zero balance every month with no negative marks going back 6years.
Any advice would be most gratefully received!