Time to complete recovery... Credit score and debt

[PuddyCat_1]

Hello,

A couple of months ago I came to the realisation that I need to get my finances in order. I would like to take out a mortgage within the next couple of years.

 

I got my reports and found out I had 1 defaulted account for £429. It defaulted Sept 2009.

I have 13 accounts: 5 from Wonga over last 12 months which are all settled and no late payments.

Mobile phone and bank ones from 2008/9 settled

A couple of ones for current insurance and mobile provider all fine

1 DEFAULT £429

1 with a missed payment from RBOS for overdue overdraft (£1399)

2 from current accounts which are activey in use. £3000 and £300 1 late pay

 

I saw this and decided to do everything I could to sort it. I have paid the default off in full and have asked for a Notice of Crooection to be added to my report. I have set up direct debit payments with debt collection agent for RBOS. I have also got myself on the electoral role as of 1st Feb.

My report says my outstanding debt is £5008. I am very lucky to be in a situation to have now got a good job and am looking to have every penny paid off within 18 months. I aim to close all overdrafts and the extra current account I don't use.

When will my report get better do you know? I'm worried it's going to stay this way for ages and I won't get a mortgage. I'm doing everything I think I can but is there anything else you think I should do to improve things quicker? Thank you.

[BRIGADIER2JCS]

Hi Welcome to CAG,

Paying off the default will get the entry marked as ''settled'' and it remains for the balance of the 6 year period from the default date.

The RBS account may be marked as an ''arrangement to pay''. Was this account defaulted?

 

As to getting a Mortgage lenders are increasingly looking at more than the ''usual' 3 years of god++ credit management often up to 5 years.

 

So a absolute minimum time scale of 3+ years after the default entry is removed and the RBS account is cleared, you will have to build a whole new credit profile showing good credit mamagement.

[PuddyCat_1]

Hi

Thank you for your response. My current score with Experian is 595. I only have 1 default and it was defaulted in Sep 2009 so I guess it will be removed from my report in Sept 2015? The RBOS account has never defaulted and has only 1 late payment. All the rest are settled or up to date now. Should RBOS be my priority debt now? Am I right in thinking from what you have said that it will take 3 years after default is removed for report to be good again? Why does it take so very long do you know? I thought once default ws gone it would start to improve quite quickly.

[dx100uk]

yes your score will improve once it drops off

but, as brig indicates

 

it may well be that the mortgage company will look to see a history of good money management

if there are no accounts remainingto show this, it could be an issue.

 

now WHY are you paying a DCA?

 

NEVER EVER pay a DCA always the Original Creditor.

 

dx

[PuddyCat_1]

Hi Dx100uk,

I am really not sure about the debt collectors... I am paying them because I thought that was what I was supposed to do. I'm really not sure of the right way to do this. I am paying 2 different debt collectors. AA Hutton for Council tax arrears (£870 left) and Scott and Co for RBOS account overdraft (£1388 left). Should I be contacting the Council and RBOS instead of debt collectors.... would this help me? I am trying to pay the AA Hutton small payments because I notice they are not on my credit report. I have come to a £30 per month deal with them allowing me to pay more towards the RBOS account.

[dx100uk]

CTAX arrears area priority debt

i take it they got a LO against you

BUT there is no reason why you cannot pay the council direct

by YOUR internet banking site [bACS]

you cant be sure the little bugers wont add more unlawful fees.

CTAX debts do not show on CRA files

 

as for RBOS

if RBOS OWN the debt on your CRA file

you pay them

 

if the debt does not show

you need to start asking serious questions/investigating WHY?

 

most OD's debts are littered with PENALTY charges

is the debt mostly those ?

 

dx

[PuddyCat_1]

Hello,

What is an LO?

In my credit report it says the RBOS debt is from RBOS. I'm not sure what charges have been applied. I have no documentation but I know my limit of overdraft was £1400 and I maxed it so I don't think there are any new charges. I had charges before when payments were taken and I didn't have funds. It was a student account - not sure if that makes a difference.

I will contact Council tomorrow and see if they will take payment directly - Maybe add it onto my current Council tax bill.

I will contact RBOS too and see what they say.

[dx100uk]

an LO is what the coucil must get before bailiffs can come on a CTAX debt [liability order]

you dont ASK the council - you just do it by BACS on your banking portal

they CANNOT refuse it that way

 

 

 

as for RBOS

 

you'll needto SAR them then.

and get a BCOBS complaint in when you have the info

 

as RBOS own it ..pay rbos by YOUR internet banking site.

 

never ever pay a DCA

[PuddyCat_1]

Hi dx100uk,

Thank you for the info. I had sheriff officers come but no bailiffs. I am in Scotland - are bailiffs illegal here? I've never seen one. Do I set up direct debit or standing order to the council? Thats all I have options of on my online bank account. Ta

[dx100uk]

SO

 

dx

[2009dg]

Hi Welcome to CAG,

Paying off the default will get the entry marked as ''settled'' and it remains for the balance of the 6 year period from the default date.

The RBS account may be marked as an ''arrangement to pay''. Was this account defaulted?

 

As to getting a Mortgage lenders are increasingly looking at more than the ''usual' 3 years of god++ credit management often up to 5 years.

 

So a absolute minimum time scale of 3+ years after the default entry is removed and the RBS account is cleared, you will have to build a whole new credit profile showing good credit mamagement.

 

So your saying if a default were to drop off say 2012 you'd have to wait another 3 years? I thought once it was no longer on the report lenders didn't know about it.

[dx100uk]

they don't

 

but if you have no other running credit to show

the way you 'now' conduct yourself, it could be that long to get one going.

 

anyhow this is not your thread...

 

dx

[BRIGADIER2JCS]

Yes the deafult removal is not an automatic entry into the credit market, you must rebuild a solid credit history which takes time, also making numerous credit apps as soon a s the default is removed will reduce your ''credit score'' very rapidly.

 

It is the solid picture of good++ credit management of a period of time that will be effective.