Anyone sucessfully rebuilt their credit file?

[baby_mama87]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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.

 

[suzib76]

Regular payments will only make it healthy once all the bad stuff drops off

I had 2 cards and a catalogue, plus a mobile contract running on mine for 2 years but it wasn't until the bad things finally dropped off my file that I was able to be accepted for anything 'bigger'

 

[superbecks]

Regular payments will only make it healthy once all the bad stuff drops off

I had 2 cards and a catalogue, plus a mobile contract running on mine for 2 years but it wasn't until the bad things finally dropped off my file that I was able to be accepted for anything 'bigger'

I think I make it sound worse than what it actually is. We have a mortgage, payments never missed, loans where payments are never missed, hubby has a barclaycard platinum cc, payment never missed. We both have phone contracts, payments sometimes a bit late and then i always forget to pay very and my credit card. So what do you mean it will take till they have dropped off? What do you mean dropped off? I know when i have looked at credit file online it shows about 2 years worth of payments, so surely 48 months of clearing debt and paying things on time should be enough?

 

[suzib76]

I wasn't posting specifically to you, but it is 6 years credit history that is on your file, not 2.

 

[superbecks]

I wasn't posting specifically to you, but it is 6 years credit history that is on your file, not 2.

Oh sorry i misunderstood. I know ccj's n defaults etc take 6 years but a couple of late payments i know for a fact don't take 6 years to come off

 

[suzib76]

I wasn't posting specifically to you, but it is 6 years credit history that is on your file, not 2.

Oh sorry i misunderstood. I know ccj's n defaults etc take 6 years but a couple of late payments i know for a fact don't take 6 years to come off

how do you know for a fact? can you link me to it please as i have never come across it

credit history runs for 6 years, a late payment or 2 wont be detrimental after a couple of years, but they are still part of your history

 

[superbecks]

On my own credit file. Experian, equifax etc don't show 6 years worth of payments on mine, only the last 48 months for some reason. We went through a phase when i first started uni of making some late payments and within 12 months they weren't detrimental. Sorry you feel this has turned into some sort of debate but i was simply asking what a default was is all.

 

[superbecks]

Oh and these no longer show on my credit file that comes up as it was over three years ago?!

 

[suzib76]

On my own credit file. Experian, equifax etc don't show 6 years worth of payments on mine, only the last 48 months for some reason. We went through a phase when i first started uni of making some late payments and within 12 months they weren't detrimental. Sorry you feel this has turned into some sort of debate but i was simply asking what a default was is all.

I didn't feel anything had turned into a debate I was merely asking how you knew for a fact as credit history runs for 6 years and not 2. That is a fact, but you said you knew otherwise so I was asking how. As it is only your own personal experience I will not take it as fact, because credit files and history run for 6 years.

 

[superbecks]

I went away and looked this up again. Credit files show 3 years worth of payments of active accounts. If you have however closed an account it remains on file for 6 years. So The payments that have been missed do not show on active accounts after 36 months apparantley.

 

[My_First]

All details on your credit files for six years active or not will show on your credit report.
This is a great document for showing what's on a credit report.

https://www.experian.co.uk/assets/consumer/credit-score/files/credit-expert-YCRE.pdf

Oh and it may only show two years on your own report due to the address. The main address you register with. Did you move house approx. 2 years ago?

I also edit, by reading back, if you are always a late payer, these will always show on your report and will continue to so so until you pay on time. These late payments will also show and be taken into account for six years. What this means though is not necessarily not getting a mortgage but you may get one with over inflated interest rates to balance their risk.