Anyone sucessfully rebuilt their credit file?

baby_mama87 · Nov 27th, 2012, 14:20 PM

I have really terrible credit! got myself into a mess a couple of years ago been silly with credit cards etc. I manage my money well now and have recently got a catalouge with fashion world just so I can rebuild my credit ive only got £125 limit and have spend £40 was just planning on doing that each month so I have a well managed account on my file. just wondering if anyone else has previously had bad credit but managed to restore it? and how long did it take? Im really worried about my ability to get a mortgage etc in the future and would like to be able to buy in about 5-6 years, would this be enough time to build up my credit?

Thanks

xxx

Abz1982 · Nov 27th, 2012, 14:51 PM

Well, I think mine was......it was down at like 400 out of 1000. Its gone back up though through never missing a payment etc, and I got an account with Studio24, which strangely seems to be helping my credit rating..... Its up near 800 now and we are buying a house now and have been told that will help, but I will not lie, its taken about 8 years. Every bad debt stays on from 6 years from the date it happened. So if you have a default, its 6 years from the date it happened or the account was closed.

suzib76 · Nov 27th, 2012, 15:32 PM

The only way to do it is to use credit and repay, but unfortunately that doesn't undo any damage and with defaults etc yu just have to wait the 6 years until they drop off yr file x

suzib76 · Nov 27th, 2012, 15:34 PM

And just to add the credit score given by a reference agency actually means very little, every credit applicant uses different scoring criteria, they don't go by the number you pay the agency for

K1RSTY · Nov 28th, 2012, 02:26 AM

Hi,

Like others have mentioned, if you have defaults, 'rebuilding' your credit won't have much effect. It's just a case of waiting out the 6 years until the default is removed.

I've never had a very good credit rating and I've no idea why. However, I was approved a mortgage back in 2007. Since then, I've received defaults and can't get credit at all. I'm not bothered about it if I'm honest as it means I can't get myself into even more of a mess. I owe £2750 overall excluding my mortgage which I hope to pay off by the end of next year.

Good luck,
Kirsty x

superbecks · Nov 28th, 2012, 13:57 PM

I know this might seem a silly question but what is a default? I have missed some payments over these last 12 months, one of my credit cards for three months on the trot and then payed the full amount. Was that a default? I have just finished uni (had a mortgage and 2 kids) the whole three years i was there an really struggled. now i have a full time job with a pretty decent wage am hoping to sort out my credit rating so we can buy a new house....will this take 6 years?x

baby_mama87 · Nov 28th, 2012, 18:01 PM

Thanks everyone do you think having the catalogue for a year or so and paying it off might enable me to.get a credit card? I don't want to be silly with anything just a case of having well paid accounts on my file. Superbecks - I'm not 100% but I think a default is.placed when there are no payments made for 5months it.may be sooner.

Xx

K1RSTY · Nov 29th, 2012, 02:38 AM

I'm not sure how long they take to give you a default but I know it's consecutive missed payments. If you've ever received a letter advising that you have defaulted on your credit agreement, there's a good chance a default has been placed on your credit file.

I took out credit cards/ catalogues to rebuild my credit but I don't think they actually help as on your credit file, it will show you have more credit which I would have though would put us at a higher risk. I could be wrong there though.

Kirsty x

suzib76 · Nov 29th, 2012, 02:53 AM

It's not just defaults that get recorded though, any missed or even late payments get put down, so one company may accept you with say, 3 late payments, but another may not, which is why the score the reference agency give means very little

Using credit and repaying is a good way to build up a good record, but it will take time and if there are a lot of defaults, missed or late payments things will not look good until they drop off. Having too much available credit can go against you, but for someone who is trying to build up a good record too much credit probably won't be an issue anyway

superbecks · Nov 29th, 2012, 02:56 AM

Quote:

Originally Posted by suzib76

It's not just defaults that get recorded though, any missed or even late payments get put down, so one company may accept you with say, 3 late payments, but another may not, which is why the score the reference agency give means very little

Using credit and repaying is a good way to build up a good record, but it will take time and if there are a lot of defaults, missed or late payments things will not look good until they drop off. Having too much available credit can go against you, but for someone who is trying to build up a good record too much credit probably won't be an issue anyway

Yes I know that missed and late payments go down but they are not as bad as a default on your file. I just didn't know for what length of time of regular payments would need to be made for my credit file to be back healthy again. Over the next 2 years or so, with an extra full time wage in the house our first plan is to clear credit cards/loans etc.

Nov 27th, 2012, 14:20 PM	#1
baby_mama87 Mum (Mom) BnB Addict Join Date: Nov 2011 Location: UK Posts: 2,689	Anyone sucessfully rebuilt their credit file? I have really terrible credit! got myself into a mess a couple of years ago been silly with credit cards etc. I manage my money well now and have recently got a catalouge with fashion world just so I can rebuild my credit ive only got £125 limit and have spend £40 was just planning on doing that each month so I have a well managed account on my file. just wondering if anyone else has previously had bad credit but managed to restore it? and how long did it take? Im really worried about my ability to get a mortgage etc in the future and would like to be able to buy in about 5-6 years, would this be enough time to build up my credit? Thanks xxx

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Nov 27th, 2012, 14:51 PM	#2
Abz1982 Mum (Mom) BnB Addict Join Date: Sep 2008 Location: Aberdeen Posts: 5,084	Well, I think mine was......it was down at like 400 out of 1000. Its gone back up though through never missing a payment etc, and I got an account with Studio24, which strangely seems to be helping my credit rating..... Its up near 800 now and we are buying a house now and have been told that will help, but I will not lie, its taken about 8 years. Every bad debt stays on from 6 years from the date it happened. So if you have a default, its 6 years from the date it happened or the account was closed.

Status: Offline

Nov 27th, 2012, 15:32 PM	#3
suzib76 Mum (Mom) BnB Addict Join Date: Oct 2009 Location: x scotland x Posts: 6,705	The only way to do it is to use credit and repay, but unfortunately that doesn't undo any damage and with defaults etc yu just have to wait the 6 years until they drop off yr file x

Status: Offline

Nov 27th, 2012, 15:34 PM	#4
suzib76 Mum (Mom) BnB Addict Join Date: Oct 2009 Location: x scotland x Posts: 6,705	And just to add the credit score given by a reference agency actually means very little, every credit applicant uses different scoring criteria, they don't go by the number you pay the agency for

Status: Offline

Nov 28th, 2012, 02:26 AM	#5
K1RSTY Mum (Mom) Active BnB Member Join Date: Jul 2011 Location: Leicester Posts: 46	Hi, Like others have mentioned, if you have defaults, 'rebuilding' your credit won't have much effect. It's just a case of waiting out the 6 years until the default is removed. I've never had a very good credit rating and I've no idea why. However, I was approved a mortgage back in 2007. Since then, I've received defaults and can't get credit at all. I'm not bothered about it if I'm honest as it means I can't get myself into even more of a mess. I owe £2750 overall excluding my mortgage which I hope to pay off by the end of next year. Good luck, Kirsty x

Status: Offline

Nov 28th, 2012, 13:57 PM	#6
superbecks Mum (Mom) Active BnB Member Join Date: Sep 2010 Posts: 836	I know this might seem a silly question but what is a default? I have missed some payments over these last 12 months, one of my credit cards for three months on the trot and then payed the full amount. Was that a default? I have just finished uni (had a mortgage and 2 kids) the whole three years i was there an really struggled. now i have a full time job with a pretty decent wage am hoping to sort out my credit rating so we can buy a new house....will this take 6 years?x

Status: Offline

Nov 28th, 2012, 18:01 PM	#7
baby_mama87 Mum (Mom) BnB Addict Join Date: Nov 2011 Location: UK Posts: 2,689	Thanks everyone do you think having the catalogue for a year or so and paying it off might enable me to.get a credit card? I don't want to be silly with anything just a case of having well paid accounts on my file. Superbecks - I'm not 100% but I think a default is.placed when there are no payments made for 5months it.may be sooner. Xx

Status: Offline

Nov 29th, 2012, 02:38 AM	#8
K1RSTY Mum (Mom) Active BnB Member Join Date: Jul 2011 Location: Leicester Posts: 46	I'm not sure how long they take to give you a default but I know it's consecutive missed payments. If you've ever received a letter advising that you have defaulted on your credit agreement, there's a good chance a default has been placed on your credit file. I took out credit cards/ catalogues to rebuild my credit but I don't think they actually help as on your credit file, it will show you have more credit which I would have though would put us at a higher risk. I could be wrong there though. Kirsty x

Status: Offline

Nov 29th, 2012, 02:53 AM	#9
suzib76 Mum (Mom) BnB Addict Join Date: Oct 2009 Location: x scotland x Posts: 6,705	It's not just defaults that get recorded though, any missed or even late payments get put down, so one company may accept you with say, 3 late payments, but another may not, which is why the score the reference agency give means very little Using credit and repaying is a good way to build up a good record, but it will take time and if there are a lot of defaults, missed or late payments things will not look good until they drop off. Having too much available credit can go against you, but for someone who is trying to build up a good record too much credit probably won't be an issue anyway

Status: Offline

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