Repairing Credit Rating

[1ManRiot]

I've got a rather dirty credit history, done over royally back in the day and defaulted on some things but

 

they're all showing as "settled" on my Equifax report now. In fact my Equifax made for better reading than I expected.

 

More recently (2010-2011) I fell into a pay loan trap and I owe Wonga about a grand and Pounds2Pocket ~£600

but I've not even been in contact with them for about 18 months.

Neither are showing as defaulted on my report though, can that still happen at a later date?

 

One other outstanding item is a default on a Halifax overdraft, ~£900. This is the only thing on my credit file that is outstanding.

 

I have a phone contract and a credit card which are both in the green and helping rebuild a good history.

 

I'm keen to get my rating back on track, I'm in a well paid job nowadays and can actually afford credit, but obviously I can't get any.

 

Am I best focusing on getting the Halifax default sorted first, as that is showing on my report?

 

Once I pay that in full and it's showing as "settled", how long roughly until I can expect my credit rating to be "good" and well priced credit be available to me again? 6 months? A year? 5 years?

 

Thanks for the help.

[marmaris30]

The only thing that is certain is that your CRA file will only ever show up to six years of history. Anything before that will not be visible to anyone who searches it, except maybe you. The history of an account is recorded up to the point where it is settled (normally) or where it defaults (for bad accounts).

 

So your Halifax default will disappear six years from the date it was made, whether you settle it or not. Obviously if you do settle it, this will show for any remaining time in those six years from default.

 

The PDLs could be a problem because they haven't defaulted yet. They could indeed do this at any time, and it seems odd after 18 months that they haven't. Any default would then remain on your file for *six years*, as would any missed payments. They will probably sell the debt to a debt collector vulture like Lowell, who will then default you and harrass you for the money.

 

You could possibly avoid this with an offer of Full and Final settlement. If your main concern is establishing a 'clean' credit history (presumably because you want a mortgage?) rather than saving money, then maybe this should be your priority to stave off hard-to-control debt collector action, although you can also make an F&F offer to Halifax.

 

I assume you don't have any CCJs but note that these also stay on for six years, unless settled in full within 28 days of judgement, in which case they are removed from your file (never 'registered').

 

Obviously make sure you don't miss a single payment on any credit accounts that are 100% reliable! Do not be tempted by any 'credit repair' services - they are snake oil salesmen.

Edited September 2, 2013 by marmaris30

[1ManRiot]

So your halifax default will disappear six years from the date it was made, whether you settle it or not. Obviously if you do settle it, this will show for any remaining time in those six years from default.

I presume it looks better settled than left unpaid though, or not?

 

Any default would then remain on your file for 18 months, as would any missed payments. They will probably sell the debt to a debt collector vulture like Lowell, who will then default you and harrass you for the money.

Yeah I've had all the vultures try chasing me; Mack Hall and various others. They are on the reject list on my phone so I don't even know when they contact any more.

 

You say here that a default on the payday loan will only be on file for 18 months? Why less than other defaults?

 

No CCJs or anything, just a lot of defaults, 2 in the past which are now "settled", one outstanding as above, and then these 2 payday loans which are outstanding but not defaulted yet.

 

I know the righteous brigade will tell me otherwise, but I'd rather not pay the payday loan **** if I can help it, but I do want to get my finances in order once and for all and if that's what it takes then I probably will.

[1ManRiot]

I just checked my Wonga account, despite the fact I didn't repay on my "promise" date of Friday 17th Feb 2012(!!) the account it still open and accruing charges on a monthly basis. I have no idea how long they will let that rack up before they default it!

[marmaris30]

Sorry I meant 6 years when I said 18 months. Basically they aren't allowed by law to maintain any information for longer than 6 years, counted from the event, of which default or settlement is the last in the life of an account (although some DCA's break this).

 

Yes, settlement does look better than an outstanding account, especially if it's defaulted.

 

As I said, if you are in a position to make F&F settlement offers then that will shut down your problem the soonest, and it is best to act to stop the PDL scamsters from adding on more interest and charges.

 

The sooner you act to get your affairs in order, the sooner the negative reports on your CRA will stop, and the sooner your file will look 'good' again, although it's best to learn the lesson and avoid credit ever again unless you have no choice, such as for buying a house.

[1ManRiot]

Ok thanks.

 

I can't make any F&F payments yet, certainly not for all 3.

 

Wonga:

your account is 564 days in arrears

Today you owe £1640.76. View details

 

I wish they'd just defaulted it straight away, it's currently going from unaffordable to impossibly unaffordable.

[1ManRiot]

Should I email Wonga and see if they will drop the figure to £1k if I agree to give them that in full and close the account? Or will that be a waste of time?

[renegadeimp]

If they havent defaulted you yet and have left the account open for almost 2 years, then get complaining. loudly.

[1ManRiot]

Complain to who, about what?

[renegadeimp]

OFT/FCA/FOS

 

They should NOT leave the account open that long, purely to rack up charges and interest for self gain. But unfortunately youa re dealing with PDL's who think the law doesnt apply to them, and the **** that runs them just laughs at you.

[1ManRiot]

Intradesting.... so I should be able to go about getting this amount knocked back down to a reasonable amount then if I go about it right?

 

 

I need to do some reading up.