Are defaults ignored after 3 years?

[Surfeit]

If you search about this online you'll find a lot of interesting things but nothing really that clarifies it 100%. Some people claim they have been successful getting prime credit cards etc with defaults over 3 years old while others say it's simply not true.

 

I've read that "most lenders perform what is known as a 3yr search so if you're clean for the last 3yrs it will go unnoticed totally, if you had missed payments or something bad they would perform a full 6yr search and see it"

 

The reason I am interested is because I have a default that will be 3 years old in a few weeks and am wondering whether I should wait for this before I apply for a student credit card?

 

And if so will it be ok to apply the exact day the default is 3 years old or wait a further few days/weeks? Any advice would be appreciated

[renegadeimp]

Entirely up to the lender. But most say any kind of default is detrimental for the full 6 years that it's on your file.

[dx100uk]

silly question I know..

 

 

but WHY do you think you need a student credit card?

 

 

dx

[Surfeit]

Entirely up to the lender. But most say any kind of default is detrimental for the full 6 years that it's on your file.

 

The lender in question is NatWest - who I have a great history with managing my account well with them for over 10 years

 

+ my credit file has been squeeky clean for the last 3 years I was hoping this would be enough to secure the approval from them and not get declined

 

silly question I know..

 

but WHY do you think you need a student credit card?

 

The maximum limit they give is £500, no exceptions so it's not like it will get out of control, but I need one for emergencies. I have an interest-free overdraft but this credit card is much better than payday loans etc

[dx100uk]

well instead of credit card or PDLS start a savings account

[Surfeit]

well instead of credit card or PDLS start a savings account

 

That won't pay for a meal/ingredients in case of an emergency though

[obiter dictum]

Every lender has their own lending criteria. Credit scores mean nothing

 

If you have any old CCJ or defaults there are companies who will give you credit card.

 

Vanquish being one of them but you pay with the APR

 

Even though i now have a clean credit file, I have a credit limit with Vanquish of £3500, the APR has stayed the same for over a year now and they will not lower it

 

59.9%

 

I would recommend getting a pre-pay credit card

 

I have had a Cash-plus Master Card for three years now.

You top it up like a mobile phone card

 

They are fantastic and 100% secure

[Surfeit]

So basically it will make no difference whether I apply for the card now or after September 4th? (when default will be 3 years old)

 

NatWest will judge the application the same?

[obiter dictum]

My own opinion this

 

Natwest being a main stream lender with computer generated credit checks will decline you

[renegadeimp]

Main stream lenders look at 6 years history. Otherwise there wouldnt be a reason for credit agencies to have the 6 year thing, nor have it in law.

 

I dont know where you heard 3 years from, but its more often than not, 6 years.

[Surfeit]

How much significance does settling a default have vs not doing so?

 

I understand that while a default is active the creditors or DCA can file for a CCJ which would mess me up for another 6 years,

but worst case scenario this happened,

 

 

is it true I have like 30 days to pay in full and the CCJ won't be added to my file?

[dx100uk]

settling a defaulted debt has no bearing on your CRA score whatsoever

be more productive to burn the money

 

 

IF... a CCJ was ever gained

you have have 28 days from judgement date to settle it before it gets perm recorded for 6yrs

then like a default its there for 6yrs paid off or not.

 

 

dx

[Surfeit]

Cheers dx100 that's really helpful

 

Sorry for annoying and another question but if I paid within the 28 days, there would be NO EFFECT on my credit file whatsoever?

 

Like lenders would be able to see that a CCJ was granted but i paid within 28 days?

[renegadeimp]

If they were granted a CCJ and you paid before that 28 days was up, then the CCJ would not be registered. It only is registered after the 28 days is up.