How much will my credit rating go up or down? That is a very common question. But it’s often tricky to answer!
This article has some guideline numbers from Experian that may help.
These are only indications – your credit score may not go up or down by this much.
They assume nothing else has changed on your record. They also apply to single issues. If you have two defaults already, getting a third won’t be as bad … And if one of your three defaults then drops off after six years, your score won’t improve as much because there are still two remaining.
If your main concern is wanting to get credit at a good interest rate, what matters is how each lender will assess your credit history. Lenders don’t actually use the calculated credit scores! So I’ve added some notes about how lenders tend to think about these situations.
Contents
How balances & credit utilisation affects your credit score
“Credit utilisation” shows how much of the credit limit that you are using at the moment. If you have a limit of £5,000 on a credit card, your utilisation would be 20% if your balance is £1,000 and 80% with a balance of £4,000.
Credit scoring gives you extra points if you are using a low amount and deducts points if you have a high utilisation. All the numbers in this article are from Experian:
- if your balance is under 30% of your limit, you gain 90 points.
- a very low balance is even better – less than £50 or zero will gain an extra 60 points – so that’s the boost you get if you clear your balance each month.
- using over 90% of your limit loses you 50 points.
- a very high balance of over £15,000 will lose an extra 50 points.
The size of the limit itself also affects your score, but not by as much:
- A high limit of over £5,000 adds 20 points to your score
- A very low limit of less than £250 loses 40 points.
Is it the utilisation for each card or overall that matters?
It’s both! So getting the utilisation for one card below 90% – or even down to zero – won’t have major effect on your credit score if you have large balances and over 90% utilisation on your other cards.
Do overdrafts count in this calculation?
No, Experian doesn’t include overdrafts. But the amount you are using of your overdraft is counted as part of your total unsecured credit.
What do lenders think about credit utilisation?
Most lenders don’t like you to have maxed out your credit cards, it suggests that you are struggling, so why would they want to lend you more? Do some lenders prefer you to have a balance, not clear your card each month? That may be an urban myth…
Lenders usually have an extra piece of information here that doesn’t show on your credit record – your income, because you will typically have been asked for this on your application.
If you have one credit card with a low limit and you are using most of it but your income is high, you can probably get car finance at a good price. But if you have borrowed a lot compared to your income you are going to struggle to get offered more credit at a good rate.
The effect of missed payments, defaults & CCJs
- A missed payment on a bill or debt would lose you at least 80 points.
- A default is much worse, costing your score about 350 points.
- A CCJ will lose you about 250 points. (For many CCJs, there will already be a debt with a default on your record, in this case a CCJ then increases the harm to your credit record, but not by as much as 250 points.)
It doesn’t matter how large the size of the problem debt is. A £25 mobile bill has the same effect as not being able to make the repayments on a loan of ten thousand pounds.
These problems are seen as less serious if they are older. Once a default is more than two years old, the negative effect falls to 250 points, then when it is over 4 years old it drops a bit more to 200 points.
These hits to your credit rating aren’t reduced when you start to pay the debt, or even when it has been fully repaid. (There is one exception here – a CCJ is deleted completely if you pay it in CCJ in full within a month of the judgment.)
What do lenders think about defaults?
Lenders vary a lot in their attitude towards defaults:
- high-cost lenders such as payday loans and guarantor loans won’t automatically reject your application if you had a default a couple of years ago, even if it hasn’t been repaid – they are targeting people with bad credit;
- you may be rejected by some best-buy balance transfer deals if you have any defaults or missed payments, even if these are old and repaid;
- some mortgage lenders will reject people with any defaults, repaid or not, but others may offer a reasonable rate of interest if your defaults are old and they have been settled for a while.
Four small wins
Once you have big problems on your credit record such as defaults or CCJs or an IVA, only time will get rid of those “black marks”. You can’t speed this up and often the key thing is to stop any new problems being added.
But here are some small ways to boost your credit score:
- Stop applying for credit! Not making any credit applications for 6 months adds 50 points to your score.
- Keep a credit card for more than five years. This adds 20 points to your score. But if you are trying to decide which card to close, always keep a card with a lower interest rate – that’s more important than 20 points on your credit score.
- Register to vote. It’s a simple way of adding 50 points to your score.
- Pay for car insurance in monthly installments. This can increase your score by 20 points. But do check what your insurer charges. Many people are paying over 20% interest to pay monthly, with a few firms charging over 50% so this can be incredibly expensive!
There is also Experian’s Boost facility. That can add up to 66 points to your Experian Credit Score – but it isn’t clear how many lenders will actually use this new Boost data.
Four things that DON’T affect your credit score – are you surprised?
- checking your credit score – this doesn’t affect your credit score and lenders can’t see that you have done this either.
- paying off a debt that has defaulted. Most people don’t believe this, but it’s true… your credit score only looks at what has gone wrong in the past, not how you are trying to put it right. But of course, repaying the debt prevents any chance of getting a CCJ, which would mess up your credit score for another six years… See Will paying a default improve my credit rating? for details.
- Someone else at your address having bad credit. You are only financially linked to someone you have a joint loan, mortgage or current account. If you aren’t, it doesn’t matter how many letters from debt collectors arrive if they aren’t for you. Have a look at your credit reports – those problem debts won’t be showing.
- From summer 2022, BNPL data such as Klarna purchases will start to be shown on some credit reports. However these will be ignored when calculating your credit score. Even when you miss a payment and a lender such as Klarna adds a late fee, this will still not affect your credit score – but as the missed payments will show on your credit record other lenders may decide not to give you credit.
Equifax and TransUnion – the other two credit reference agencies
This article has been all about Experian’s credit score calculations.
Equifax and TransUnion are the other two major credit reference agencies in Britain. They have broadly the same approach as Experian, but their credit scores have a different maximum (if you think this is bonkers, I agree!):
- Experian’s maximum score is 999
- Equifax’s maximum score is 1000 (it used to be 700 – it was changed in 2021.)
- TransUnion’s maximum score is 710.
So a change to your score for any particular factor is going to be smaller on TransUnion than Experian. And a 500 score on Equifax is poor but it’s good if you are looking at a Clearscore report!
The major lenders like the big banks report to all three credit reference agencies. But smaller lenders may only report to one or two. So you may find that your scores and reports are very different on different reports.
If you are worried about your credit score you should check all three credit reference agencies. Luckily you can do this for free, see The best ways to check your credit score.
Improve your credit score for a mortgage
How to use a credit builder card
What should the default date be?
Lynne says
I just checked my Credit report and the CCJ was entered as £760
Sara (Debt Camel) says
ok so had you misremembered 850 or did they add on extra charges afterwards.
The reason I am asking all this – which may seem irrelevant – is to work out if they have broken the FCA’s price cap.
Lynne says
I must’ve misremembered but the CCJ they entered definitely is £760 and the original loan £350.
Sara (Debt Camel) says
The CCJ included the court fee I assume?
Lynne says
Yes it must’ve done but it doesn’t mention it on the statement from moneyboat. Shall I go back and ask them what the court costs were?
Keith says
Hi Sara
I have a DMP for 3 years now and not missed a payment, but my credit score is low due to the defaults. The only financial tie i have with my wife is our joint mortgage (all other ‘joint’ accounts are in her name) . We have never missed a payment on the mortgage in 15 years bar the 3 month COVID holiday of 2020… my question is, do my debts / score impact my wife in any way since we have a joint mortgage, even though those payments have been 100% clear?
many thanks
Keith
Sara (Debt Camel) says
Because you have a joint account, you should each be listed on the other person’s credit report as a Financial Associate. So a creditor your wifes applies to can see that and then they can check your credit record, so your DMP may make it harder for her to get credit.
Sean says
Hi
Just wondering, I’m paying into a dmp however on my credit report, it is constantly showing up as missed payments? How would I go about sorting this as I am paying my plan on time each month
Thanks
Sara (Debt Camel) says
who is the lender?
Are the DMP payments to this creditor low?
How long has your DMP been running? How long until it completes?
Sean says
It’s a loan from Yorkshire bank
It’s roughly 30% of what they where getting prior to the dmp. It’s got 3 1/2 years to run and been in it for over a year now
Cheers
Sara (Debt Camel) says
So it is wrong to show this as missed payments, you can complain.
But the question is, what do you want this corrected to?
The alternatives are for the debt to be marked as in a payment arrangement. Or for a default date to be added 3-9 months after your DMP started.
The rule for adding a default is that is should be applied when you are 3-6 months in arrears (see https://debtcamel.co.uk/debt-default-date/ which looks at how to get a default added). But as you are making a 1/3 payment each month, “6 months in arrears” will not technically be reached until you have been in the DMP for a few months longer than 6.
A default is worse for your credit score at the moment. But it has the BIG advantage that a defaulted record will drop off 6 years after the default date. So if one is applied in 2020, your credit record will be clean in 2026.
If no default is recorded, the debt will only drop off 6 years after it is settled. If your DMP finished at the end of 2024, the payment arrangement will continue to be visible until 2030.
That isn’t an easy decision. Have a think about how likely that DMP end date is. If you think you can increase the paymenst and settled the DMP earlier, then the debt will be settled earlier and drop off sooner. Also it will be clear to creditors that your DMP was only needed for a short time.
But if you think you may need to reduce payments than it is probably a better decision to ask for a default to be added now.
Ruby says
I asked a few questions about my score. Just letting you know that since my default dropped. I still have a 1 CCJ, my credit score went up from 751 to 810. I was able to get my new car credit. Thanks
Sara (Debt Camel) says
Good!
James M says
Hello,
I had a CCJ on my credit file which has just dropped away after 6 years. I have a Default (Settled) from 2017. After the CCJ was removed, i was shocked to see that my credit score only improved marginally. Depending on the credit reference agency, its either Poor or Fair. I pay my credit card on time and have paid down the balance to under 30% as suggested in some forums on this site. Any advice would be greatly received as id like to apply for a mortgage very soon. Thanks in advance.
Sara (Debt Camel) says
when was the defaulted loan settled?
If the only two problems were the defaulted loan and the CCJ, I am suprised you did not see a bigger change when the CCJ dropped off.
what is your credit card limit? have you been making minimum payments?
are you using an overdraft?
James says
Hi Sarah, Apologies in taking a while to reply.
The default was dated 01/03/2017 and was £851. This was settled in June/July 2019 and is now showing a balance of £0. Would RBS remove this as a gesture of goodwill if i wrote to them?
I have one creditcard with limit of £2050. I probalbly use half that. I make minimum payments and also make one off payments too. Im not currently in my overdraft but have been in the past a fair few times.
Through Credit Karma, my credit score is showing Fair (569).
Your advice will be greatly appreciated.
Sara (Debt Camel) says
It is very unlikely RBS will remove the default unless there is a reason why it was wrong. The credit scoring rules are based around all lenders reporting honestly what happens.
You need to try to get your credit card usage down to under 30% of the credit limit and keep it under that all through the month. Can you stop usaing the card? And set up a standing order to repay a bit more than the current minimum each month? So if the minimum is £72, stretch that ond set up a STO for £75 or £80 or as high as you feel confident about? This only works when you aren’t using the card.
James says
That’s a good idea. I’ll do that. Is it still
possible to get a good/excellent rating with the settled default lingering in the background?
Sara (Debt Camel) says
probably not excellent. But the default is itself getting older, which also helps, as the article above explains.
Nick says
Well worth looking at a bank or building society that will have a human looking at your credit score. My credit rating has bounced around from very bad to excellent over the past year despite no change in my circumstances. My private bank gives me £20K credit, Vanquis gives me £250, MBNA gives me £12K, Tesco gives me £900. There’s no logic to it.
Rose says
Hi, Sara,
I have just had a CCJ come off my records (it was sent to the wrong address, and Lowell Solicitors finally accepted this, and, as I had since paid in full, applied to the court to have it set aside) – I understand that the points themselves don’t matter in real terms, but I was surprised to see that this improved my score only 10-18 points depending on the CRA. The associated default is still showing (2017, currently the subject of an FOS complaint over affordability) – this is the only thing I can see likely to do major damage (no late payments, or other defaults, low credit card percentage usage with relatively high limits) – if my complaint is upheld (credit record today only in such good shape because of the advice you’ve kindly given here) do you suppose that they would agree to remove this default also? Or would that happen only if they never should have Lent in the first place? That’s only been found in one case, against safety net, and the complaint relates to JD Williams, so a very different lender.
Thank you for any advice!
Sara (Debt Camel) says
Well done on getting Lowell to remove the CCJ. That matters not so much because if your score but because any CCJ, even if it is repaid, will make many lenders either reject you for credit completely or set a high APR.
What is your current credit score?
If you win an affordability complaint at FOS the default will normally be removed. If your decision from the adjudicator doesn’t say that, ask them to add it.
Rose says
Hi, Sara,
Thanks so much for the advice. My score with Transunion now is 588 (up 18) Equifax is now 541 (up 10) and Experian is 673 (up 10). Don’t get me wrong – it’s a dramatic improvement from where I started (ten defaults have gone based on your help) but I suppose I thought I’d see a greater impact – the main thing, though, is that it has gone, so can’t be seen and have an influence on the future.
I’m pretty certain most of the complaint will be partially upheld, so finger’s crossed on the default: thank you for clarifying this process.
With having it removed – they refused initially, saying they’d followed procedures, but I proved to them that I had sent them details of two further moves, whilst trying to negotiate a payment plan. It’s taken fourteen months to resolve from paying it off, but definitely worth persevering with!
Sara (Debt Camel) says
is that Equifax credit score through ClearScore? If it is, then those numbers sound reasonable if there is still a default remaining.
Rose says
Hi, Sara,
Yes, it is – thanks for clarifying this for me: it’s really appreciated. Hopefully, the complaint relating to the remaining default will be settled in the next 12 months – if not, it drops off in June 2023 anyway.
Thanks so much again, for all your help!
Chelsea says
Hiya, I have no defaults on my credit score just one CCJ which will be 6 years old next month, sept 2021, so I’m expecting this to be removed soon. My score is currently 593 on Experian will it improve once the CCJ has gone and do you know how much by? Thanks
Sara (Debt Camel) says
This depends partly on what other problems there are on your credit record. No defaults, but do you have and missed/late payments? Payment arrangements? Are you using a high amount of a credit card?
Chelsea says
No nothing, I had other defaults that dropped off this past year, I have one credit card with a £300 limit, I only took that out because a negative factor on my report was that I didn’t have a credit card but other than that my credit scores completely clean, only 1 hard search and no missed payments etc
Sara (Debt Camel) says
ok, are you using the credit card every month for something small – less than £100 I suggest – and you repay it in full everymonth? That gives the biggest boost to your credit score.
So your credit score is likely to jump next month. The article above quotes Experian as saying a new CCJ can be a hit of 3250 points – it may be that the penalty drops after a few years. But you should see a very good increase. Can you come back and say how much?
Chelsea says
Yeah I’m not really using the credit card and when I do I just pay it straight off last month my utilisation was 6% yeah I will come back and let you know, will it be October when It will show as removed of it expires September? Thank you
Sara (Debt Camel) says
Are you paying the amount straight off the card soon after you buy something? It is better to set up the card so it is automatically paid in full by direct debit.
The CCJ should go in September. If you are looking at a credit report that is updated every day, they can see this immediately. But many reports are only updated weekly or monthly, see https://debtcamel.co.uk/best-way-to-check-credit-score/ so it can take a bit of time to show on those.
NICO says
Hi Sara – I recently won a claim against Capital 1, part of the settlement was that all negative credit marks would be removed. Seems Capital 1 have just removed the whole account. Is this what should happen please or should the account remain and it just look like I have paid on time throughout the account being active? I had a default on this account but that seems to have lessened the score and now its gone (with the whole account) my score seems to have hardly changed? Any thoughts please?
NICO
Sara (Debt Camel) says
Do you have other defaults or problems on your credit score?
NICO says
Hi – no other defaults, just 3 or 4 late payments. Do you think the credit card from C1 should be there and be 100% perfect or removed completely pls? Thanks
Sara (Debt Camel) says
so what is your credit score now and what report are you looking at?
NICO says
Clear – 224 – no rise yet but hoping this weeks update may reflect the DEFAULT removal
Credit Karma – 410 – no rise yet but hoping this weeks update may reflect the DEFAULT removal
Experian – 597 – did go up 389 this week.
Thanks
NICO
Sara (Debt Camel) says
So that is a major change in your Experian account. I would expect an improvement to the other two if the Cap One default showed on them all. There is obviously some difference between your ClearScore and Credit KArma accounts, so some problems aren’t showing on the CK report.
FOS normally says negative marks should be removed, but if a lender wants to do that by deleing the record, then that is fine.
Robert Carrick says
Hi Sara,
I hope all is well with you.
I have just received a letter to say that I’ll be registered on the Electoral Roll on 1st Dec. But this will now won’t be reflected on my credit file until prob Jan 2022 I think. I have just started building my footprint in the UK as I’m from Ireland and am now on CRA’s (since this week with a Bank Account). But as can imagine my scores are not that high and being on the electoral roll would boost this. Do you know of any way I can expedite the process by doing or contacting anyone? Thanks again for help!
Sara (Debt Camel) says
Most councils have 2 or 3 months in Sept-December in which they don’t update the Electoral Roll.
This is a weird anomaly but I am afraid there is no way you can speed this up.
Robert Carrick says
Thanks again Sara – you’re so helpful !!!
Do mortgage lenders such as NatWest etc generally give mortgages to first time buyers (I’m Irish and only just 1 month on Credit file) without being on the Electoral roll on the CRA’s?? I have the success letter from council to prove I’ve been accepted but not on it till 1st Dec. My partner (English) and I have 15% deposit and over 100K combined income but struggling to even get an AIP. Any advice would be super.
Cheers!
Sara (Debt Camel) says
I suggest you need to talk to a good broker.
Jimmy says
Hi Sara,
Sorry if I’ve missed this in the previous threads but I have a question around defaults.
I have 1 default that is due to come off in 2 weeks (so the 30th of September 2021). I have no other defaults.
I do have a CCJ that has been satisfied (was for 1000£) which is 2years and 10 months old at the time of writing. I know this has a negative effect which will lessen over time.
With my default coming off soon do you have an idea of how much points I will gain ( or not ) with Experian once the default is removed ?
I know I can get the answer in 2 weeks shortly after it is removed but would prefer to know earlier so I can financially plan :) any advice would be appreciated.
Many thanks
Sara (Debt Camel) says
That depends a lot on the rest of your credit record. Do you have other payments arrangements or missed payments showing? A high credit utilisation? No active credit at all? Etc
Jimmy says
Hi Sara,
Sorry I didn’t get a notification for your reply but thanks for your speedy response!
I have had a amazing turn our around since the default has fallen off. From 600 to now 890. Although the its not all about chasing scores its allows me to see im gradually getting better rates.
I now have NO defaults or any other markers aside from a CCJ which is now 36 months old. Still a pain in the back side but at least some high street banks are considering me!
Thanking you for your time!
Elle says
Hi everyone, I’ve just had the adjudicator agree with me for an account that includes my one and only default (I have no other negative markers) Thanks to this site, I have cleared nearly all of my debts, and have a 6k refund due from 118 – which will clear my final loan- final loan is and has always been in good standing I’m only paying it off so I’m debt free as seems sensible even tho it causes no problems. I have no credit cards, no overdraft, no car finance, no credit lines, nothing! I am ECSTATIC it has taken me YEARS to get to this point so thankful to Sara.
My credit score on Experian is currently 585 which I am assuming is because of the default -any idea how much can I expect the credit score to increase after the default is removed please? And considering all the above do people think I may be able to get a mortgage next year? Thank you so so so much
Sara (Debt Camel) says
How old is the default?
Your chance of a mortgage will depend mainly on your deposit and the affordability if there are no negative marks on your credit record. But it is good to have some active accounts… the final loan, how large is the balance, what are you paying each month and what is the interest rate on it?
Elle says
Thanks for your quick response Sara
Default is from 2018
Re a mortgage it’s less about what I’ll get as that will obviously depend on deposit size etc my query was more do I have a chance of being approved for one now that I have no negative markers as before this I was thinking I didn’t stand a chance with the default :( hoping credit score is going to improve a lot after this goes!
Current Loan 4K left, always been in good standing and will continue to be, £150 a month but I’m paying it off when I get my refund I don’t want anymore debts. 46.87% apr
Thanks again
Sara (Debt Camel) says
So at a guess if this is your only negative point showing your score may go up c 200-250 points.
That’s a very expensive loan – it will save you interest by paying it off now.
But it is, regrettably, good to have some open credit when you apply for a mortgage/ You can probably get a credit builder card now, see https://debtcamel.co.uk/credit-builder-cards/. Use it once a month for something small ; less than a 25% of your credit limit – and set it up to repay by direct debit in full every month, so you never get charged interest.
Lee H says
Hi, I had two defaults and a DRO which were added to my credit file on 9th November 2015. Is a DRO similar to a CCJ in how it impacts your credit score? I was expecting to see a big increase in my credit score today, but it has increased by only 50 points. How soon should I expect to see a bigger impact on my score?
Sara (Debt Camel) says
Does the new report show that the defaulted debts have dropped off? That the DRO is no longer there/
Lee H says
Thanks for the super quick reply. The DRO is still on my credit report for today on Experian and Clear Score. Even with that small increase on my Experian score it has only brought it up to 379.
I have no other missed payments, defaults or derogatory marks on my score. I do have 3 credit cards with a low credit limit and am using 71% of my available credit limit? I understand this may hurt my score a bit. But I didn’t think it would be this low. I have also had two hard searches since May 2021.
Sara (Debt Camel) says
Well I suggest waiting a couple of days. Then also check the Insolvency Register has been correctly updates, see https://debtcamel.co.uk/end-dro/
Using a 71% of low limit credit records is not good – can you stop using them and over pay them a bit for a few months?
Lee H says
Will do. Thank you very much.
Would you suggest once they have been paid off to close those accounts?
Sara (Debt Camel) says
How large are the limits?
Lee H says
So I have 2 at £250 and 1 at £400. I also have one at £2500
Sara (Debt Camel) says
I would be inclined to close the two small ones once they are clear. You don’t need more than a couple of accounts to help your credit score.
Shaq b says
Is there a points system like this with equifax ?
Sara (Debt Camel) says
Not published. I just know a very helpful person at Experian who gave me these.
I suggest you assume Equifax is very similar.
Miss L Crain says
Hi Sara,
Should I update addresses on my credit report to help with ‘tidying’ up my file? I’ve noticed some accounts are still showing my previous addresses. Some settled accounts and one active account. I’ll update the active account but I’m wondering if I should update the settled/satisfied accounts to my current address or not? They were active when I moved here but have closed since. What do you think? I’ve heard stories of mortgages not bring accepted when addresses weren’t accurate is all. Thanks in advance!
Sara (Debt Camel) says
It’s definitely a good idea to update an active account!
I haven’t heard of people needing to update settled/closed accounts or having problems with a mortgage because of them.
Sara (Debt Camel) says
I have just asked someone from Experian and he says there’s no need for anyone to go back and change addresses for settled/satisfied accounts.
Den Pet says
Hello,
My score on Experian is currently 711. I will have a ccj falling off my report in April. How much will my score go up by? The rest of my report has been good for the last 4 years. No issues. I have 1 credit card with 20% utilization.
Sara (Debt Camel) says
At a guess possibly 125-150 points? Can you come back and say what happens?
Dan says
Hi Sara
My Clearscore credit score has fallen by 66pts this month.
The only two changes according to Clearscore are:
1) my debt has decreased (aswell as credit % utilisation so should have only been a positive impact)
2) my electoral roll information has been updated
On the second point I haven’t changed address, have been at the same flat for nearly five years and the address still seems to be exactly the same. Have you/anyone else seen this before? This must be the driver for my score going down but I can’t see why as I haven’t moved and the ‘new’ address looks the same and correct. So there’s been a change but no change? Very confused.
Thanks
Dan
Sara (Debt Camel) says
I wonder if your local authority supplied a complete new list this year rather than just updates?
Have any accounts been closed? Any credit limits reduced?
James says
Hi Sara,
I am looking to get a mortgage very soon but unfortunately have a default on my credit score. This is from a phone bill that I was unaware of being an issue until I received a letter through the post notifying me that the debt had been sold by the phone company. As soon as I received this letter from the new company involved I paid it off in full (under £100). I have recently asked that it is removed explaining I didn’t receive correspondence from the phone company and was only aware of it when they contacted me via post and paid in full immediately. But, they informed me they are unable to remove it.
The default is on my file for just 1 more year and I have no other defaults etc on my file before or after that.
How much will this impact my chances due to the age, size and it being marked as satisfied?
Thanks James
Sara (Debt Camel) says
There are some lenders with ok (not the best) rates who may consider you if you have a reasonable deposit. Talk to some brokers.
My advice is always not to get a high cost loan from a bad credit lender – they will say you can remortgage after a couple o& years to a normal rate but there is n9 guarantee that will be possible. People can be trapped in these expensive mortgages for many years. In 2009 they saw the interest rates on their bad credit mortgages being increased, when all good lenders were cutting their rates.
James says
Thanks Sara!
We will be looking at a 10% deposit as a minimum with the ability to go up to 20% if necessary.
I know you can’t say for certain but do you think we could at least get some options from lenders under these circumstances?
I am applying with my partner who’s credit score is currently on the cusp of good-very good and hoping clarifying electoral addresses could tip them into very good.
Sara (Debt Camel) says
You may find it easier with 20% equity not 10%. Talk to some brokers.
Daniel O'Brien says
Hi Sara – nothing else has seemed to change on any of my accounts. Very strange and rather annoying – do you think the credit reference agency will help with this kind of stuff?
Sara (Debt Camel) says
I suspect they will be entirely useless.
Credit scoring is like a big black box – telling what happens inside is very hard.
There are definitely some odd things happening with Equifax/ClearScore at the moment – some people have jumped from a not great scoere to a perfect 1000… and others say they are being told they pay debt collector fees when they don’t… see the comments below this other page for some examples: https://debtcamel.co.uk/equifax-scores-now-out-of-1000/
Whether there is a wider problem with their calculations, I don’t know. I suppose it is possible.
One thing to remember is that no lenders ever see the score that is calculated for you. They use different scores… So if the ClearScore number is wrong, then you can just shrug…
But that isn’t very helpful, is it? because if your score has dropped, how do you know if some error in some data won’t also mean that a lender declines you for credit?
Maciej says
I have a question. My CCJ has been paid but it is still until January 2025 and I have 3 defaults until 2024 and they were also paid but are still in the credit file. when can I apply for a loan in advance? these were youth errors now for 4 years i have stable my copper and i think about morgage. There is any option to imporcie score event now ? Or any other way to make better my situation. Thank you for answer
Sara (Debt Camel) says
It will be very hard for you to get a mortgage with a CCJ and 3 defaults on your credit record even when they have been repaid. You may be able to improve your credit score a bit, eg by using LOQBOX, but mortgage lenders don’t really look at your credit score at all, they just look at the past problems on your credit record.
The best thing to do is to settle back and save a large deposit. Perhaps talk to a mortgage broker in late 2023, but there is no point in trying at the moment.
Maciej says
wants to take morgage as default and CCJ disappear from the file. Do they disappear after the expiry? i would like to try to get a morgage in 2026. is there a chance? my wife has good credit history with no file errors.
Thanks for your adavance
Sara (Debt Camel) says
they will all drop off 6 years after the default date or the CCJ date.
Callum says
Hi Sara.
I have a CCJ due to be removed in March (6 years old). What sort of improvement do you think I could expect on my scores?
I want to apply for a mortgage later this year… I do have a defaulted payment that is 6 years old in November, do you think it would be best to wait till then?
My Experian score is 985
My Clearscore is 697
My TransUnion (credit karma) is 562
Sara (Debt Camel) says
has the remaining default been repaid? if so, how long ago was it?
Callum says
The remaining default has not been repaid… To my knowledge I’ve never been chased for this. The CCJ is also unpaid again never been chased for it
Sara (Debt Camel) says
With a CCJ or an unpaid default on your credit record you have no chance of a mortgage at an Ok rate.
The problem with waiting until the default drops off is that the creditor may decide to go for a CCJ… see https://debtcamel.co.uk/no-calls-or-letters-about-debt/. Indeed if the creditor does not have your current address, they may send the papers to the old address and you may get a CCJ without knowing about it.
You really need to look at settling this old debt know eg with a full and final settlement offer. As that link explains.
Callum says
I get that I should be paying off absolutely everything but I’ve always been on the electoral roll and the open register so can’t see any reason that if they were going to chase me I wouldn’t have heard about it.
Best case scenario and the default isn’t chased and, as it hasn’t been in the last 5 and a half years, do you think it best to wait till that goes off too? I’m not particularly bothered about paying a slightly higher interest rate for a couple of years.
What increase should I expect on my scores? (I realise that the actual score is meaningless and just an indicator and that a creditor will be looking at the report as a whole)
Sara (Debt Camel) says
I am not suggesting settling it because I think that is ethically what you should do – my point is the practical one that you are HIGHLY likely to be contacted about the debt before it does drop off. And unless you have informed the creditor where you live, court papers may well be sent to a previous address.
A mortgage lender does not even see the score you see.
NG says
Hi,
I have a default coming off this week. It’s the only default or negative mark on my credit file.
I have consistently kept up with all payments since the default.
Just wondering how much it may go up by.
Looking for a decent Apr for car finance.
Many Thanks
NG
Sara (Debt Camel) says
what is your current credit score?
do you have credit cards – how much of the credit limits are you using?
NG says
Thanks for replying.
Experian is 743, TransUnion is 587 and Equifax 720. I have £3200 limit with a balance of £750.
Sara (Debt Camel) says
Then they are likely to go up to very good.
Have you looked at getting a cheap bank loan instead of car finance? This means your car isn’t at risk if anything goes wrong with your finances and you can’t pay the loan – you can but a bank loan into a debt management plan in necessary. Also you avoind haveing to keep refinancing as you do with PCP.
Ng says
I thought about it but my credit hasn’t been good so I just thought I would not be accepted. Im still trying to work out the difference of PCP and hp. I do like to change my car often so I need to work out the pro and cons. Thank you
Ng says
Also, please just one more thing. How much in points will the score go up please? Thank you
Sara (Debt Camel) says
possibly a couple of hundred. But it really depends on what else is on your credit record.
Sara (Debt Camel) says
Well it is your choice. Changing your car often keeps you poor… you are paying every time for the expensive depreciation in the first 3 or 4 years of a cars life and you never get the benefits of the cheap years from 4-8 when very little normally goes wring.
Ng says
Thanks alot I’m definitely listening to all your advice
Alex says
Hello. I had a severe heart attack in December 2020. I was hospitalised for 3 months. During that period my Argos card buy now pay later expired. Obviously I hadn’t set up a direct debit at that point because I was in hospital, and when I came out of hospital and was able too sort out my affairs for the previous 3 months I called them, paid up to date including what was missed. I’ve just checked my credit report and it is showing I defaulted for 2 months during that period. As I paid up to date and – as I explained to them why and they were very understanding – have not missed any payments at all since, if I asked them to remove the defaults do you think they would?
Sara (Debt Camel) says
are these showing as missed payments or defaults?
Alex says
Hi
Defaults.
Alex
Sara (Debt Camel) says
so you missed exactly how many payments?
Alex says
2. But after calling them up as soon as I was able to do so and explained they were great. I made back payments on the call and everything was bought up to date etc.
Sara (Debt Camel) says
If you only missed two payments, no default should have been recorded – only missed payments that are not as bad for your credit record.
I suggest you send them a complaint in writing about this. See https://debtcamel.co.uk/debt-default-date/ – as you will see one if the examples of what to put in the complaint is that you were never 3 months in arrears.
If they refuse to do this, take your complaint to the ombudsman.
Also in addition I think it might be asking them to consider removing the missed payments completely as a goodwill gesture, given your health problem at the time and the way you promptly resolved the issue. they don’t have to do this, but I think it’s worth a try!
UkAlex6674 says
Hello. I called them, and they said sorry we can’t get the markers removed but as a gesture of good will they will refund me x 2 late payment fees.
However they called back 15 minutes later and said they will remove them and still refund the x 2 late payment fees.
They said it could take up to 6 weeks to show on my credit file but give them a ring back if it hasn’t been actioned.
Thanks for your help!
Sara (Debt Camel) says
excellent news for you.
Ruby says
Hi Sara
Thanks for all your help so far. A free reading you links I still have a few questions
My credit scores from different credit agencies are going in different directions
Clear score went up drastically to 923
Experian keeps falling and now at 679
credit karma unchanged for which seems like forever at 544
I have a CCJ which was put on July 2017 and waiting for it to drop off. I have 1 credit card and took out car finance 9 months ago. I am looking to move home and apply for a new mortgage. Is this possible or should I wait for the CCJ to fall from my account.
Thanks
Sara (Debt Camel) says
I guess the CCJ isn’t showing on your Clearscore report? They seem to have a lot of problems at the moment after a systems change last year.
Apart from the CCJ, what other problems show on your Experian and Credit karma reports?
Ruby says
I don’t have any other issues
1 credit card using about 40%
1 car finance
All payments on my credit report shows all payments have been meet for 5 years
Sara (Debt Camel) says
Well your score will go up if you can get the credit utilisation under 30%.
Until the CCJ drops off, you would only be able to get an expensive mortgage from a bad credit lender. I would not recommend that.
Ruby says
Ok thank you. I will wait
NGL Hun says
Hi Sara
Wondered if you could help me.
I have had a lot of credit card debt – around £25K for a few years but I’ve just received my bonus and paid off £9K of it. I was struggling a bit financially so have a couple of missed credit card payments early this year, but my financial position has now changed and I am now going to be paying off about £1.7k a month in debt each month and will be debt free by January 2023. Yay.
I have one default on my file – for missed payments of car insurance for £120 which I paid off when it happened and I realised the money hadn’t been coming out of my bank as I thought. It’s from 1 year 10 months ago.
At the end of 2023 I was hoping to apply for a mortgage, do I stand a chance? I am on £115K and will be trying to buy a £500k property and think my deposit will be around £65k.
Current credit scores are crap. But obviously now working to repair.
Thank you so much in advance
Sara (Debt Camel) says
So by the end of next year you will be debt free, the default will have been 3 years ago, the missed card payments 18 months ago and you will have been trouble free for more than 18 months. You may be OK, I suggest you talk to a broker next summer by which time everything should be clearer. Onbiously the sooner you can clear the debts the better. And the bigger deposit the better.
Bob says
I have a question about linked addresses. I have a number of linked addresses on my Transunion credit file. These are all from more than 10 years ago for debts that have been settled. The addresses are correct but they show sources of the linked address as a debt collection agency. I understand that these addresses stay on my credit file indefinitely. Can a lender searching my file see the sources of the linked address or just the address? My credit file is clean apart from this. I am worried that the fact there is a debt collection agency on my file may cause me problems.
Sara (Debt Camel) says
I can’t imagine that this would be a problem – why would a lender care about that?
Bob says
Because it shows I have been referred to a debt collection agency in the past? Do you know if the lender sees the source of the link?
Sara (Debt Camel) says
I don’t know but even if they can, I don’t see why a lender would care. Lenders make money by lending.
Bob says
OK thanks for your help
Chris says
Hello Sara, I exchanged contracts a few months ago and unfortunately have had to purchase a new car as my old one had died and need one for work! We did speak to our mortgage broker who said we should be okay but might have to do affordability reassessment, but cannot help but worry. Myself and partner had less than £300 committed spending before and now will jump to around £700, which should still be affordable, we have combined income of £49k.Is there a further check at the end which could cause issues, and if they were to withdraw the mortgage what would be our options.
Sara (Debt Camel) says
I am sorry but your broker is in the best position to advise whether this may cause problems and what you should do.
Alex says
Hello. My Experian score is 558 on their website but 925 on the MSE Credit Club website.
Why would this be so wildly different please?!
Sara (Debt Camel) says
no idea! I suggest you ask MSE.
Dave R says
Hi Sara,
I’m getting married in July and paying a lot of deposits at the moment – with balances due to be paid in the coming months.
I wanted to know whether I should consider getting a credit card in order to pay these amounts with the extra section 75 protection? I’d make sure to manage the account well, pay off straight away and in full. If I had a card with say a £10k limit and kept the utilisation rate below 20-25% (maybe the occasional high transaction that’s paid off instantly) – would this have a big impact on my credit file?
I’ve rebuilt it significantly in the last 18 months and now have no missed payments, no defaults, no credit balance anywhere, no overdraft.
Sara (Debt Camel) says
There is no chance of getting a credit card with a 10k limit unless your credit record is spotless and your income is high.
As https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/ explains, you will get section 75 protection on the full purcahse even if you only pot the deposit on a credit card.
Dave R says
What if it was a smaller limit? Say £2-4k?
Sara (Debt Camel) says
It may be hard to keep a smaller limit under the 25% utilisation rate? Personally I would go for the section 75 protection if I was worried about the firms I was dealing with and had the cash to repay in full at the end of the month. Does any temporary impact on your credit record matter?
Dave R says
I guess a temporary impact wouldn’t matter too much I guess. Equally we can get a friend or relative with a credit card to pay the deposit and send them the cash before they do I suppose!
Sara (Debt Camel) says
A cardholder may have trouble claiming on section 75 unless the purchase was for their own benefit.
Dave R says
So if it always paid off in full and on time, a smaller limit and only occasionally at a higher utilisation rate, do you think this wouldn’t be so bad? EG. 25% of 3,000 would be £750 and I think many of the amounts I’d be paying on credit card would be between £100-£300.
Likely to be going through the mortgage process at the end of this year, beginning of next year, is it fair to say that a well managed card taken out in April 2022 shouldn’t be too problematic for mortgage applications over 6 months away? Assuming that no other forms of credit are applied for/taken out in that time. Also assuming that there’s no missed payments, a utilisation that rarely exceeds 25-30% and that the balance is paid of in full every month.
Is it also important that the card is used a little every month rather than not using at all? I would likely not carry it round with me and set up automatic repayments every months have have simple things like Netflix coming off of it.
Sorry for all the questions Sara!
Sara (Debt Camel) says
do you currently have a credit card?
Dave R says
Not currently no. Am looking into whether or not I should get one.
Sara (Debt Camel) says
In that case getting a small well managed card now should be fine. It may even help your credit score. Just don’t run a balance. You want no balance and a VERY low spending on the card for the last three months at least before a mortgage application.
Dave R says
When you say not running a balance and zero balance, does that basically mean always paying off
In full every month and never going into a month where it’s not all paid off?
Sara (Debt Camel) says
yes.
Anthony says
Hi Sara,
I was discharged from my bankruptcy in October 2021 after the usual 12 months. I recently had to get all of my creditors to correct the default dates and now that they have done that my credit score has improved very slightly.
One of the cards I had with a zero balance with Barclaycard had a £4000 credit limit, which remained all throughout my bankruptcy, but of course I did not use it as per the rules. Recently they reduced the limit to just £100.
Does having this open account with a zero balance have the same effect as having a card that I am repaying the balance in full every month, or do you specifically have to spend on the account and then make repayments?
Sara (Debt Camel) says
The card won’t be helping your credit score unless you are making payment to it each month.
You can maximise the benefit by spending less than £30 (ie less than 30% of the credit limit) and repaying the full amount every month, never leaving a balance and never paying interest.
But with such a low credit limit this card will never help your credit record much, as the article above says, a limit of under £250 loses 40 points from your credit score.
Can you afford to save £20 a month every month? If you can, then your best way forward to improve your credit score may be to close this Barclaycard account and open a LOQBOX account for a year.
Anthony says
Thanks very much. Yes, my financial situation is actually pretty good, but the bankruptcy means I cannot get a good credit card for reward points etc. I am not looking to borrow but want to repair my history to gain one of these cards again in the future. I failed to protect my personal finances from my failing business and so I declared bankruptcy. I will close this account and get a credit builder card now that I know the zero balance doesn’t help. Thanks again, Sara!
Sara (Debt Camel) says
ok then a credit builder card and also a LOQBOX regular savings for a year is a good idea.
Anthony says
Okay great. And with LOQBOX, would the amount I save make a difference either to improving my credit history or to credit card providers looking at affordability further down the line?
Sara (Debt Camel) says
LOQBOX looks like a loan that is being repaid at £20 a month or £50 a month or whatever. Some creditors my view a larger loan repaid on time as more impressive than a smaller loan, but I would keep the amount to something you are absolutely sure you can manage, no matter what energy abd petrol prices go up to…. better a £20 a month loan that completes perfectly than an £80 a month one which you have to cancel after a few months.
Craig S says
Hi, I have some missed/late utility payments 5 years ago. The accounts were brought upto date and closed 3 years ago.
My question is; will the late payments drop off as they become 6 years of age or not until 6 years post the closure of the accounts?
Sara (Debt Camel) says
They won’t vanish but they should stop hurting your credit score.
LL says
Hi,
I have a 2 defaulted accounts on my credit history – both from same debt as one was the lender and the other is the debt collector. The debt is paid off in full and the defaults will be 6 years in July 2022.
I lived out the country for the last 10 years and only moved back in June 2021 – so I’ve only started to have active accounts and a credit card of £200 limit (I use below the 30% mark) and a Loqbox that will finish in July of £20 a month.
I’ve got a score of 451 (combined trans, Exp, Equ) and looking to buy a house with my partner who has no defaults or bad debt and a score of 854 (combined T/Ex/Eq).
When the defaults come off in July, how much do you think will my score go up?
How will my credit score impact mine and my partner’s ability to get a mortgage after the defaults come off in July?
Thank you for your help!
Sara (Debt Camel) says
I have a 2 defaulted accounts on my credit history – both from same debt as one was the lender and the other is the debt collector. The debt is paid off in full and the defaults will be 6 years in July 2022.
Your credit score and other lenders only see this as one debt, not two.
Your score should go up a lot in July. Scores arent that relevant for mortgage applications, what matters is the problems showing on your credit record, and it sounds as though there won’t be any. Good luck!
Craig Simpson says
Very similar situation to me this month and my score rocketed once they dropped off!
Matt says
Hi
Follow this site for a number of years and seen people updating there information. I have had two default drop of my file in the last month and my score rose on Experian from 220 to 440 in the poor score however my last default fell off on Wednesday and my score rose by 510 points to 960 and in excellent range . I have no late payment and three credit cards with low limits with highest been a £1000 . I hope this gives people an idea of how scoring is worked out .
Sara (Debt Camel) says
that was a dramatic jump at the end!
Patsy says
Hello, I have two CCJs that are both dropping off next month (finally) on different dates. Does each ccj have a negative point impact on my score e. g 100 points per Ccj or is the impact not associated to the number of ccjs? Hope the above makes sense. Thanx in advance
Sara (Debt Camel) says
2 are worse than 1 but not twice as bad.
Patsy says
Thank you for your informative and speedy response.
Patsy says
Just to let you know they dropped of and the Clearscore impact was around 140 points in my favour for the two ccjs // thanx again
Patsy says
dropped *off (lol)
Radu S says
Hello, I have just had a CCJ set aside by the court today, however I have another old one of £700 which is due to be removed in June ’23 for which I am currently paying monthly.
My experian score is 667 today, should I expect an increase once one CCJ drops off?
Thank you!
Sara (Debt Camel) says
Do you have defaults and arrears showing?
Radu says
Hi Sara,
There are no defaults or arrears showing under the defaults section both on Experian and clear score, I am assuming that is because the default on the longer CCJ from 2017 was logged before the actual CCJ and it has dropped off this year. On the other hand, on Clear Score the account that I am currently paying monthly towards the CCJ says it’s ‘In Default’, but on Experian there is no record of any default showing.
Sara (Debt Camel) says
so ClearScore – does this have a default date on that debt? What is the date?
Radu says
No, it doesn’t. I remember I had a date in the past which was 2015, I assume that’s long gone. The debt just comes under the Accounts section with no date on it, just the balance that I am paying towards monthly
Sara (Debt Camel) says
Have you given ClearScore access to your bank account and this is in the “affordability” section of the report?
Radu says
I’ve tried this function a while ago and they could not link it. I tried again today as you’ve mentioned and it’s the same. Due to a technical error they cannot link the accounts.
D says
Hi,
I have had a default added to my account due to Barclays closing an old student bank account and selling the outstanding overdraft amount to an agency. I was not aware that the account remained open and that a small overdraft had accrued (less than £100). Due to a change of address the first I heard of the matter was when I was contacted by the collection agency and the amount was settled immediately.
I have a good salary and (previously) ‘excellent’ credit score with over 10 years of mortgage repayments etc. This was reduced to a ‘very poor’ score overnight which seems wholly disproportionate.
I want to remortgage for home improvements but fear this will not be possible due to the default. Is there anything I can do to challenge the default or improve my score other than wait for this to drop off in 6 years!?
Thanks
Sara (Debt Camel) says
When did you settle the account and what is the default date on the credit record?
When did you stop using the account?
Do you have any other accounts with Barclays?
D says
Hi
Thanks for the response.
– The default was added to my account 18 months ago and the debt was settled immediately
– The account was not active for a number of years (5+), unfortunately a very small monthly direct debit remained meaning the account entered into an overdraft facility during this period of which I was not aware
– I have no other accounts with Barclays
D
Sara (Debt Camel) says
when roughly did the account first go into the overdraft?
D says
Hi, I’m not sure as no longer have access to the account but was in small positive balance (c.£100) when it became inactive.
Sara (Debt Camel) says
you can ask Barclays to remove this as a gesture of goodwill – point out you cleared the debt as soon as you found out about it.
But strictly they are correct to have added the default. You could try to argue that they should have added a default earlier, but banks are rightly slow to add a default to an overdraft when it is small.
You may be able to get a remortgage with a high street lender at an OK with a small default on your credit record that was settled 18 months. Talk to your current lender and explain the situation.
If not, then you can try again in another 18 months – a general rule of them is “default over 3 years ago and settled more then one year ago” may well be acceptable.
mike says
Hi Sara,
I’m currently in an IVA but according to my Equifax credit score I have excellent rating of 905
I don’t understand. My IVA is even showing in the public records section, so why would they give me an excellent score like this?
Sara (Debt Camel) says
no idea! That isn’t normal at all
Ryszard says
Hi Sara,
I had 6.5k in credit cards as well as I have around 6k out of 8k left to pay for the car HP loan. Yesterday as my cards were about to be on the end of 0% period and I will have to pay 29.9% on them I consolidate them into one 24.9% loan. I will go for the settlement eventually to reduce the interest and pay it off in quicker.
The question is. How many points down will be by taking that loan?
And If I paid off three cards with it, utilisation is now 0%, will that raise the score on the long run and build up the score after I took that consolidation quickly enough?
Sara (Debt Camel) says
That is a dreadfully expensive loan. It would have been better to talk to StepChange about a debt management plan which is like a consolidation loan but it’s at 0% interest and it’s flexible, so if your energy bills go up a lot more in October (which they probably will) you could cut the DMP payments.
I can’t guess the affect on your credit score from taking this loan because your credit score is likely to be poor, or you would have been able to get a loan at an OK rate.
But I strongly suggest you should close the three cards. If you don’t then it’s very likely that in 6-12 months you will have started spending on them again and that’s a disaster. Your credit score is less important than you think, what is vital now that you pay off your debts.
Cathy says
Hi Sara
Apologies if this is not the right forum, but i am just after a bit of advice. My son has bought cars from Fords using Ford Credit since 2013. He had never missed a payment and bought his last car in Feb 2021 financed on Options with Ford Credit. He ordered a new car approximately 9 months ago, due to the issues with new cars the car has only just arrived in the dealership. the salesman who we have dealt with for the past 10 years applied for credit via with Ford Credit. My son was putting in £3000 as a deposit and agreed the monthly payments. In the past info was gathered which included details of employment status, length of time at address. The only thing that has changed is that his salary has increased. This time Ford Credit asked for permission to access his bank account. They had refused credit based on 2 returned direct debits, one in Nov 2019 and one in Jan 2020. Both payments were made within a couple of days of the missed payments, as detailed on his bank statements. Seems rather harsh to refuse a loan considering they accepted his application for his current car in Feb 21. Any advice on how we proceed would be greatly appreciated
Sara (Debt Camel) says
Can he just keep his current car? If it’s on PCP can he get a bank loan to finance that?
Buying repeatedly on car finance is an incredibly expensive way to buy a car as he pays every time for the first few years large depreciations and never enjoys the later cheap motoring years.
Cathy says
Hi Sara
He is exploring all options. His main concern was being declined for finance with Ford Credit, having previously had an excellent record with them. Their new method of conducting a credit check which has resulted in them declining his application has had a negative effect on his credit report. Any new applications to other lenders to finance the balance on his PCP may also be impacted.
Do we have any right of appeal against Ford Credits decision and what evidence should we gather to ask them to review his application again?
Kind Regards
Cathy
Sara (Debt Camel) says
His previously excellent record isn’t really relevant to their decision about whether to lend to him now – they have to do a new affordability check.
Does this new PCP deal cost less per month than his current one?
The balance on the current PCP must be a much smaller amount to borrow?
Cathy says
Hi Sara
No the new agreement is more expensive than his current car. The new car is his dream car, his current car was just what the dealership had available when he needed a car. His concern is now he has a declined finance agreement on his file which may impact his ability to borrow in the future including the PCP balance.
He has appealed the decision supported by the Ford salesman who our family have dealt with for the past 25 years. Our salesman has been shocked by the number of loyal customers who have been declined by Ford Credit since their new affordability check was launched.
In an already struggling market the car industry is now being hit by their own finance companies declining loyal customers.
Sara (Debt Camel) says
Then he can’t argue that it would be cheaper than the one he is currently paying.
A lot of car finance was handed out without proper checks before.
His best option is to just borrow to clear the current finance and then use the next few years to save up a larger deposit for a more expensive car in future.
One declined finance probably isn’t a big problem if his credit record is otherwise fine.
Darren says
Hi There,
I had an ombudsman find in my favor and part of the reconciliation was to remove all negative reporting from my credit file.
Would this include a CCJ if that was as a direct result of the irresponsible lending? i.e. if the lender had not lent to me irresponsibly, then the CCJ would never have occurred. If so, who would be responsible for removing the CCJ?
Many thanks
Darren
Sara (Debt Camel) says
It would have been good if you had clarified this with the Ombudsman at the time. Have you asked the lender to do this?
Darren says
I haven’t to be honest as I had a 3rd party dealing with it but they haven’t clarified as to whether or not they have asked the lender to do so with the CCJ. They did ask for the remaining negative information to be removed but some 13 weeks later, it still remains on my file.
Would I be able to approach the ombudsman for clarity on this as the report from them states “Remove any negative information recorded on Mr **’s credit file regarding the loans”
Many thanks
Sara (Debt Camel) says
You need to ask your claims company. They should have done this.
Darren says
Thanks Sara
I have asked the question of the solicitor.
Darren
Stephen says
i had a CCJ ‘expire’ at six years in June, yet there has been absolutely no change to my credit rating which remains at 508/one star with my credit monitor, but it has made not the slightest difference I have an occupational pension, a par time job and own my own house outright. This is most puzzling.
Sara (Debt Camel) says
I have no idea. Why are you using this report and how much are you paying for “membership”? I thought it had vanished years ago.
I suggest you check the three free credit reports listed in here: https://debtcamel.co.uk/best-way-to-check-credit-score/. See if your CCJ still shows on any of those.
Stephen Dudley says
Thank you for your swift response. It is a bit odd, as the same people Credit Karma also shows 508, yet the free Experian login shows 972! (I’d cancelled their subscription, and will do the same with MCM. I wonder if they have to remove it manually?
Sara (Debt Camel) says
CCJs do not have to be removed manually.
so does the CK report show the CCJ? if it does, what date does it have for it?
if you get the MSE credit club report – that shows all the Experian data. Compare that with the CK report – what is different?
Stephen Dudley says
Bizarrely there is no mention of the CCJ in any of the reports (it had its sixth Birthday on 26 June), but the points are stubbornly stuck at the 508ish for Transunion as they have been all year. It is almost as if the update hasn’t read across the system, or it is using data from earlier in the year. I even got them to generate a paper copy for me. I hate computers!
Sara (Debt Camel) says
did the CCJ previously show on a TransUnion report?
What is the difference between the TransUnion report and an Experian report to account for the large difference?
Elle Howell says
Hi I have a default due to come off in jan 2023 and may 2023. The accounts that these defaults are registered against I am still repaying (the debts won’t be settled but the defaults will have the 6 year expiry)
In may 23 I will have no other debts or late payments recorded other than those loans with expired defaults. Credit score is 535 presently.
In may 2023 my shared equity loan is due to be repaid and whilst I have been cash saving to reach the amount likely due, I know I will not have the balance based on the changes to cost of living etc I will only have 50% cash savings .
I was hoping to remortgage to repay the shared equity loan and potentially consolidate the remaining debt and repay with one go. There would be sufficient equity in the house to be able to do this. Is this likely that I would be able to obtain a remortgage? If I have demonstrable savings no other debts and equity that could cover everything
Would a broker be able to secure a deal do you think?
Sara (Debt Camel) says
How many defaults is this? what is the total current balance?
A broker will have a MUCH harder job unless these defaults have been settled 6 months before a new mortgage application.
Have you considered offering full and final settlements to these defaulted debts now?
Elle says
2 defaults (jan 23 and April 23)
I have made offers and not accepted 21k in total
Home improvements loans then a separation so I was left to Mansage bills
Sara (Debt Camel) says
those are pretty old defaults – how much did you offer to settle them?
the problem is that it doesnt matter what is on your credit record, what matters is the outstanding debts. Which the lender will know about from your bank statements. So the fact your credit record will be clean doesnt actually help you.
Shared equity mortgages are a pretty niche market. you will have to talk to a broker about what may be possible.
Ian says
Hello, i had three defaults, 2 have dropped off this week and 1 more to come off next year. Ive seen no change in my credit file as of yet. Is it a case that i wont till all defaults are removed? Does the credit scoring change for each default? Or does it not matter how many you have and the score is only penalised once? Thanks
Sara (Debt Camel) says
what is the rest of your credit record like? are there missed payments, payment arrangements, high credit utilisation, ccjs?
all defaults make your score worse, but the changes in the article above are for when you have a pretty clean file and only have 1 default. Two defaults are not twice as bad as one. If there is a lot of other bad stuff on there, losing a default may not make much difference.
Ian says
Hello, my credit file is clean apart from that 1 default. No missed payments or anything, i presume once that final one drops off there will be a decent jump on my credit score
Sara (Debt Camel) says
if you don’t have very high credit utilisation, then I would expect 2 out of 3 defaults going would improve your score.
But many reports you see are a snapshot and they don’t say what the date of the snapshot was. Check again in a few weeks I suggest.
Sharon says
Hi there,
I have a default with Barclaycard which is about to drop off my file – this month October 22. Will the missed payments associated with this debt also drop off? On my clear score credit file it shows missed payments in 2016 of which there are 6 and I’ve had none since 2017 onwards is clear. Any help would be very appreciated.
Sara (Debt Camel) says
the whole record will go if there is a default date in October 2016 showing.
But what do you mean it is clear from 2017? Have you settled this debt?
Sharon says
I meant that I have had no missed payments since 2017. Thanks for your help. Have you ever been asked about the checks carried out by the Solicitors Regulation Authority SRA for the purposes of admissions? Financial conduct needs to be declared if there is anything adverse but I would like to know whether the SRA or Atlantic data (who carrying out the screening) actually check a candidates credit file or just public records.
Sara (Debt Camel) says
I am still not clear what is happening to this debt at the moment – are you using the card and paying it? not using the card and not paying anything?
I am sorry but I have no info on SRA checks.
Sharon says
Hi, the default relates to a debt that I am not currently paying. Thanks for telling me it will come off this month as default is 28.10.16. I get letters about setting up a payment plan which I will do. I was frightened to make payments in case the debt sort of renewed itself on my file. I do want to clear the debt. The only other adverse information is from a Satsuma loan. This was settled in 2021 as part of the scheme arrangement. So it states zero is owed. It does show missed payments on the settled account. I am checking with them as to whether the loan was deemed to be unaffordable because I would like to try and get the account removed completely. It was a pay day loan and basically at 500% apr it was never going to be affordable. I made an arrangement to pay and paid that for 24 months without a problem but the 24 months plus data has ‘666666’ which doesn’t look great. Do you think that I have a chance of having it removed? Any help would be great. I really want to move forward in the right way now.
Sara (Debt Camel) says
“I was frightened to make payments in case the debt sort of renewed itself on my file. “
it won’t.
has the debt been sold to a debt collector?
“I am checking with them as to whether the loan was deemed to be unaffordable”
Come back when you find the answer or if they don’t reply to you within a month
Sharon says
Hi, default has now come off my file. Equifax score went up to 813. Experian score only went up by 55 points to 546. I mentioned provident loans x 2 (Satsuma) which are on my Experian file. They are not shown on my Equifax file. Do Provident report to Equifax? I am not sure whether these loans were deemed unaffordable. As it stands the two loans sit partially settled on my Experian account and there is a note which says that the information on this account is not impacting my score – this is the same note as on my other accounts in good standing. I think that there was a default in 2018 which has been removed by Provident. The two loans were Zero’d as of December 21. The loans were unaffordable.. I took a second one as the first had left me with no money. I then could not pay either. I have written to Provident because I feel that the information on my credit file is not accurate in terms of missed payments, which still show. Also I don’t believe that ‘partially settled’ is fair. I made an arrangement to pay the whole amount and would have done had Provident not zero’d the loan in 21. I think I would have preferred the default to remain as at least then the whole file would have been gone by 2024 as opposed to hanging around with missed payments until 2027? Experian have written to Provident as I have told them I feel the information is not accurate. I hope that Experian might be willing to suppress the accounts if they don’t receive a response?
Sara (Debt Camel) says
Did you make a claim to the provident scheme for the Satsuma loans?
Sharon says
Hi Sara yes I did make the claim. I’m pretty sure I got a notification saying that it had not been upheld. Sorry I made a mistake in my last message when I said I felt the partially settled mark was fair I meant unfair as I intended to settle in full and had made payments for over a year after the default. It was only partially settled because they set it to zero in 2021. The balances were less than one hundred by that stage. These two loans are the only adverse issues on my credit report and I want to do what I can to improve or if possible remove. Although Experian note says not impacting I think it is because of missed payments, thanks
Sara (Debt Camel) says
So the debt you are worried about is a Satsuma debt, not Barclaycard? (Sorry this thread is a bit confusing)
And the problem is that Provident failed to add a default date earlier so it will be on your record for longer? When di you first miss payments to provident and do they show as missed mayments on your record?
Sharon says
Sorry to confuse. Yes the debts I’m concerned about are Satsuma. Barclaycard default has now disappeared as you said it would. There are two satsuma (provident) loans on my Experian file. They are not on Equifax. I took the first loan Feb 18 and the second May 18. I then could not pay. I missed four payments and then set up an arrangement to pay. Both were zero’d by Provident in Dec 21 and the files are marked partial settlement. Missed payments are still showing there are lots of sixes. I am confused because on Experian it states that the account is not impacting on my score but the missed payments and partial settlement is visible. I think it was not deemed unaffordable I’m checking this. It wasn’t affordable and I took the second loan to cope. I didn’t appeal. I would like to ask you: Do you think that missed payments should still be showing? Do you think that I could get the accounts removed/suppressed? Do you think I could argue that partial settlement is unfair because I would have eventually paid in full and the account would have disappeared if the default had remained. Thanks for all your help.
Sara (Debt Camel) says
if the loans were deemed unaffordable, then it is simple – the records should have been deleted and Experian should now suppress them.
Did you have a a long period of 6s showing? So you were 6 months in arrears for a long time? In that case provident should have registered a default. If they did add a default you can point out it was too late – you can ask Experian to suppress the records on the grounds that they are incorrect and you can no loger get them corrected.
Al-Wasim says
I have a default by NewDay my missing 3 consecutive payments in 2019, its all paid off since last 2 years now.
It was a Paypal credit issued in 2008 an d passed on to Santandar > Newday > Link Financial.
I sent them FOI requested for original contract and terms and conditions and all transactions details:
But they failed to produce and written that contract is not in readable state and they do not have no trace of terms and conditions and did not provide transactions details.
Can I get this default removed as they do not have any terms and conditions in place those mention when and how they can put default on my file.
Sara (Debt Camel) says
After a debt has been settled, there is no obligation for a creditor to supply you with the consumer Credit Act agreement for the debt.
And anyway the t&Cs do not have to explain when a default is added to your credit record.
If you think the transaction are wrong and that you did not miss three payments, that would be different. In that case you need to evidence this from your bank statements.
Jamal says
Hi
If you can help my .
I had loan from 2018-2022 September.
In pandemic time I was lost job and I contact with bank.
Bank reduce my monthly payment for 6 month and put in plan. But after 6 month I was starting to pay normal payment and made extra payment for going back to my track. In September 2022 i paid off my load and loan account is closed.
In Experian my score now 966
TransUnion Is showing 3 late payment
1. My question is TransUnion is wrong how can I remove?
2. Can I get mortgage?
Sara (Debt Camel) says
This bank debt (What sort of debt was it?) – does it show on Experian?
You only made 6 months of reduced payments and the bank agreed to these?
Jamal says
Hi
This is personal loan and bank was agreed
Also they advise me to go plan as I lost my job that time . They reduce monthly pay and date also. Experians
Not showing anything but Trununione show late payment. Please advise what shall I do ?
Sara (Debt Camel) says
This is not TransUnion’s error – they only report what the bank tells them.
You need to make a complaint to the bank that their reporting to TransUnion is wrong – that 3 months late payments should not have been recorded – and that their reporting to Experian is correct. Ask them to correct the TransUnion reporting.
Jamal says
Hi
Thanks for help and the problem now resolve.
Could you please advise
In my credit report have Arrangement to pay. But no more loan and no credit card . All are pay off .
Can I get mortgage?
Sara (Debt Camel) says
how long ago was this debt settled?
how large a deposit do you have?
Jamal says
Debt settled 2 months ago and I was plan from October 2021 to January 2022.
Deposit have £20k
Share ownership 35% share
Share price for 35% 125k
Sara (Debt Camel) says
You should talk to a mortgage broker, but unless you can get the missed payments removed it may be unlikely you can get a mortgage at a reasonable rate.
Lee says
Hi Sara, long time lurker here.
The background of my credit file from checkmyfile today (all 4 CRAs)
Credit utilisation 10%
0 searches in past 6 mths.
I have a couple of accounts with a few missed payment markers.
I have 3 defaults, 1 x Nov 20, 2 x Nov 21.
Now, I have 3 CCJ’s on my file so my score is awful. I’m literally on 200 everywhere. However earlier this year I was accepted for capital one card at £200 and a phone contract with o2, so things are slowly happening.
Question 1 – these 3 CCJ’s are due to drop off by June 2023, at which point I anticipate my utilisation will still be around 10% with 0 searches in last 6 months. The most recent payment history (last 12 months) will all spotless, BUT there will still be those 3 defaults and a couple of missed payment markers that’ll be over 1 year old.
Realistically, will I see at least a considerable increase in my score when they drop off? I want my score to be in the “Fair” category, as I know that Good or Excellent will mean a spotless score with no adverse accounts. Is this realistic, or are the defaults going to keep me in a poor banding for a long time?
Question 2 – even though I expect interest rates to be much higher on an approval, can I expect any limited mainstream lending at lower amounts at all? Or have those defaults pretty much doomed me? I just thought because there’s no court information anymore that I might favour slightly better.
Sara (Debt Camel) says
3 CCJs going will help. The names of the bands mean little in practice. Have the defaulted debts been repaid? How long ago? These things don’t affect your credit score but they affect how lenders view applications.
What sort of mainstream lending are you hoping for?
Lee says
Hi Sara
Yes, the 3 defaults have all been fully settled and satisfied and paid off in full, not in part. Only just within the past month, for all 3. Really focusing on trying to polish up my credit report.
Ideally a mortgage.
I’ll have a 10-15% deposit.
I know it’ll be a much higher rate but I’m 37 and still renting and have a partner so combined income can easily afford the higher rate. Just desperate to get on the ladder before I pop my clogs lol.
Is it realistic or will the 3 defaults make it all but impossible?
Sara (Debt Camel) says
The mortgage market is currently in chaos and no one knows what it will be like mid next year. But as a general rule (not now… not in 2020 because of covid…)
– you can get a mortgage from a high street lender IF the defaults are over 3 years AND if they have been settled for over a year, over 2 years is better.
So your problem isn’t the defaults it’s that they are very recent. That suggest that Nov 24 may be a good time to look…
I know that’s more than a year later but I never recommend people getting a bad credit mortgage.. even high street mortgages are 6%+ and a bad credit mortgage will be much more.
The broker will tell you you can remortgage at a better rate in 2 years – well there are a LOT of people discovering now that they can’t remortgage with a good lender…
So when the CCJs are gone, talk to a broker. But really do not get a bad credit mortgage.
Andrew says
Hi all,
I have 2 defaults showing on my credit file one from the lender showing as settled and now another from the debt collection agency but it is showing as default date 2018 but start date Feb 2023. Two questions can I they record 2 defaults on the same debt as it’s showing as I have 2 for the same debt and also how can I challenge that they have incorrectly recorded this hence a start date on 2023 . I don’t have a credit agreement with them etc. is there a way to challenge these!
Sara (Debt Camel) says
A start date of 2023? That’s in the future?
Two debts is normal when a debt has been sold – only one is used in credit score calculations.
Andrew says
Hi, yes one default is still registered but settled with original default date, now the debt collect agency have contacted me to say that there was been an error and they will be raising it against their name as the default but the original default date. I have checked my credit report and it is showing as 2 defaults for same debt and when I looked the debt collection one says default date (original date) start date Jan 2023 which is totally wrong. My question is can they have to defaults recorded and how do I challenge this.
OB says
Hello Sara,
Your advice will be much appreciated.
I ran I to a financial trouble back in 2018 ” after 10 spotless years” , ended up having 6 defaults on my credit record on Aug 2019 ( 5 credit cards and one loan = total of £45,000 ). No ccj. All of my debt was sold to PRA group. I entered a money management plan with Gregory Pennington and paid low amount the PRA group ( 6 separate low payments every month) until start of 2021. At that point I changed jobs and my financial circumstances got better. I decided to contact PRA na dmake a deal with them for an increased payment ” I didn’t like it that Gregory Pennington were charging me a percentage of every payment I make to PRA. PRA got happy and I started paying them £350 every month and sometimes one off payments here and there . Managed to bring the debt down to £37,000.
I have 2 credit cards which I don’t use – credit limit if 750 and 1000.
I never missed a payment with regards to my mortgage.
My Experian score is 911
My Equifax actor is 902
TransUnion is 514 ( the worst out if the 3).
Now my questions is, will it be better if I make larger payments to clear all if the debt quicky ? My mortgage renewal will be in 4 years time, does my debt needs to be fully clear by then to get good rates or it doesn’t matter as the default woilve been already removed by then ?
Many thanks in advance for your help
OB
Sara (Debt Camel) says
Do the PRA debts appear on your Experian and Equifax credit records?
Good move to ditch Gregory Pennington – you could have got the same DMP for free from StepChange but as you have Found it’s pretty simple to do it your self.
How large is your mortgage and what is the current rate?
The extra payments, how much do these add up to in a year and how much more could you pay?
OB says
Thanks got getting back to me in no time.
I’ve got £260,000 left on my Mortgage, a very good rate of 0.75% that a very good broker got for me. I think what helped with this low % was the fact that I stayed with the same mortgage provider before all.if this mess started so they didn’t have to credit checks and the broker advised me to go for 5 years one :)
Yes the issue is PRA is showing ok my credit profile. The credit cards shown as closed and settled but PRA showing default ( same dates as credit cards) and ” d” every month. This is amkign me think that they will show on my credit profike even after the 6 years ?
The issue with Equifax is that it’s showing the PRA as credit cards???
I can afford to pay £700 total per month max( 350 direct debt and too up another 350)
Sara (Debt Camel) says
who do you bank with? (This isn’t as irrelevant as it sounds)
OB says
When the issue started I was banking with Lloyds. I moved after to NatWest as per Gregory Pennington as they said one of the balances with Lloyds and they in the past did take money from the account. I kept the account open. Recently I closed NatWest account due to personal information hack from water company and bank info in back web. Current my main account is Monzo.
I also have a basic account with HSBC open a bout a year ago but I didn’t really use.
I closed an account with Starling and Metro not long ago as I felt no need for many accounts.
Sara (Debt Camel) says
ok so to answer your questions:
will it be better if I make larger payments to clear all if the debt quicky ?
It won’t improve your credit score.
does my debt needs to be fully clear by then to get good rates or it doesn’t matter as the default would’ve been already removed by then ?
When you come to a needing a new fix, often your current lender won’t credit check you or check affordability (unless you want to change the mortgage eg extend the term or borrow more)>
But a new mortgage lender will check your credit record and ask to see bank statements… so if the payments to PRA show on the bank statements they will see there is a defaulted debt even thoy=ugh it is off your credit record. That usually means no good rate mortgage offer.
So ideally you want the PRA debt gone 6 months before your mortgage fix ends.
But if you are disciplined there is no need to increased the monthly payments. You could instead get some regular savings account (HSBC has one https://www.hsbc.co.uk/savings/products/regular-saver/) and put an extra £250 a month into that. get some interest on the money. Obviously don’t do this if you may be tempted to spend it”
Lee says
Sara I have a couple of missed payments here and then like a number 1 here and a number 3 there and a number 2 only about 4/5 though and none in the past 12 months. Each missed payment marker is an odd one off not like for several months long etc.
Anyway, I have 3 CCJs that are due to fall off in 6 months.
But I still have 2 defaults that will stay on for the next 4/5 years.
I am currently in the bottom rank at poor on every credit score going (I know it’s only a guide and each scorer lends differently) but it would just be nice to get out of the very bottom category.
Is there any chance the CCJs will lift me into the next category. Maybe from poor to needs improvement or something. Or will the defaults have almost as much of an impact literally?
Sara (Debt Camel) says
That’s hard to tell, with several records with missed payments and 2 fairly recent defaults. Have you looked at making affordability complaints about the defaults and possibly some of the missed payments too? See https://debtcamel.co.uk/tag/refunds/ which has articles about this sort of complaint. If you win one your balance may be reduced but also your credit record would be cleaned, with missed payments nad defaults being removed.