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?
Andy says
Hi Sara
As I’m hoping to get mortgage with a decent interest rate in the next couple of years, I’ve been waiting for three defaults to be removed from my credit report. Two defaults have already expired and the third is due to end in November 2023. At the same time I have been using multiple credit-building credit cards to establish a solid history of on-time payments. In three years my scores with TransUnion and Experian have gone from ‘very poor’ to ‘fair’ and with Equifax from ‘poor’ to ‘good’. When this last remaining default is removed, will my score suddenly shoot up or start to recover gradually?
Many thanks
Andy
Sara (Debt Camel) says
Are these defaults the only negative marks on your credit score? No missed payments or payment arrangements? What is your credit utilisation like? DO you use your overdraft?
The defaulted debts – have they been repaid, if so, when?
Andy says
The only other negative markers on my report are two missed payments from 2018. In 2017 I missed at least one payment every single month but these are no longer visible on my reports with TransUnion and Experian. The 2017 missed payments are still showing in ClearScore’s ‘Payment History’ section as it includes data held by Equifax for the last seven years, but I don’t think they are still affecting my score.
No payment arrangements.
Regarding the defaults, I repaid one in 2021 and it was marked as ‘satisfied’ and the account as ‘closed’ before it disappeared from my report. With the other two defaults, I attempted to pay them back but was told the debts had been written off. One of them was removed last year as the six years were up. The last remaining one is for £306 but I have no way of repaying it. The reason the defaults were incurred was that in 2017 I was advised to contact my creditors prior to a six-month stay in rehab and tell them that I was no longer able to continue paying them. They wrote off the debt and never chased me for it but they each recorded defaults.
My credit utilisation is currently 1% of £12,850 and never goes above 3%.
No overdraft.
I’m aware that my scores have already begun to improve; I was just wondering if they will shoot up in November or whether they will continue to increase gradually.
Many thanks
Andy
Sara (Debt Camel) says
Then your credit score should jump a lot. Not right up to excellent until the missed payments in 2018 are no longer counted.
Shaun says
If it helps anyone I had one default which fell off and have had no adverse on my credit report whatsoever and clear score went from 581 – 807 when it dropped
Ben says
I’m in the same situation! Mine comes off in 2 days’ interested to see what it goes to. Currently at 760. Will update you when score updates
Jordan says
Hi,
Looking to get my credit file in the best condition for mortgage application, not been to a broker just yet. Experian 999, Equifax 720, TransUnion 613. Got a payday loan at Uni in Sept 2017 and paid it 14 days later so thinking it’s wise to let that drop off first?
TransUnion have my Uni flat address as 307 as that was the original flat but I actually moved into 108, told Santander a couple of months later but only 307 reported to TransUnion as far as I can see. Should I raise a dispute with the bank or TransUnion?
Lastly if I payed off 2 contracts to O2 in December should they be updated as satisfied by now? There’s no record of this on my file but once when I was chatting to O2 an agent said I still had £30 outstanding on a contract from years ago? Now when I phone no agent can see it…
Thanks. J
Sara (Debt Camel) says
A payday loan taken in 2017 and repaid on time is unlikely to be a problem now with any lender. No need to wait until it drops off.
How long ago was the uni address problem?
The two O2 contracts are currently showing as up to date with a balance owing?
Mike says
Hi sare wen my Iva drops off off in 2028 how many points will go up to Experian 347
And I be debit free
Would it help pay off the Iva in settlement offer help and if what will it go up by ruffley
Thanks Mike
Sara (Debt Camel) says
your IVA started in 2022?
repaying an IVA early will not speed up the process of repairing your credit record.
Gem says
Hi Sara
Just wondering what your recommendations would be around getting a mortgage. I have a mortgage currently but separated and wanted to take my ex off the mortgage. I have 3 defaults and score of 760. 😕 2 defualts will be gone by the end of march and all debts cleared.
My mortgage fixed rate ends in July. Would banks considering giving a mortgage to someone with a default? I would one default or would be wiser to wait till that one is removed in September. Would banks consider someone if defaults only recently been cleared? Would credit score go up drastically after defaults?
The mortgage will be low. 50% equity and well within my limit based on income. Credit atm, have a 1000 credit card limited – currently utilising 0%.
Thanks.
Sara (Debt Camel) says
the default that will remain – how long ago was it? when was it cleared?
Gem says
Thanks for getting back so quickly. 🙂
Default was back in 2017 and will be cleared by September 2023.
Sara (Debt Camel) says
When I said cleared, I meant when was the default repaid, not the date it will clear from your credit record?
Gem says
Oh apologises. All the defaults have been cleared this month. So only recently. 🙂
Sara (Debt Camel) says
How desperate are you to get him off the mortgage? Because if you can wait until October, your credit record will be clean and 6 months of bank statements won’t show payments to the defaulted debt… that may mean they aren’t a problem.
Gem says
Thanks. Pretty desperate but the better outcome is to wait if I can.
If I can’t would they likely to decline me a mortgage based on this information? Not sure they’ll show on the bank statements as the repayments came from a joint account which has now been closed.
Thanks again for your help 🙂
Sara (Debt Camel) says
I think you should talk to a good mortgage adviser about timings. Be clear – how much cheaper may your mortgage be if you wait until October?
Ben says
Hi Sara. My Experian score is 760. I have one default due to come off on the 13/03/2023. I have zero missed payments in the last 5 years. On the electoral roll for the last 4. 2 credit cards with £3000 limit each. Have £50 balance on both for fuel which I pay back every month on DD. No loans outstanding.
Firstly – Why is my score so low when my only bad point is a default which is due to expire in a couple days. I have seen people with more defaults or CCJS who have higher ratings?
Secondly – What score do you think I’ll get with the default off? I’ll reply back once it’s off with an updated score, but thought would be interesting to see how accurate you could be.
Thanks
Ben
Sara (Debt Camel) says
did you have other missed payments that are still showing for debts that didn’t default?
are you using your overdraft every month?
Ben says
Don’t have an overdraft. No other missed payments at all
Sara (Debt Camel) says
The article above suggests that the effect of a default after 4 years is about 200 points. So your score of 760 doesn’t surprisingly low.
Come back and say what it goes up to when the default drops off?
Ben Gerber says
Hi Sara,
My Exp score jumped to 985 this AM after the default fell off. Happy days!
melissa says
love to see this! gives me hope for mine. Doesn’t expire until 2025 but still!
A Wright says
Hello, my husband and I decided to go into a DMP for a short period from February to May 2022. We sold our house paid off all our debts and moved into private rented accommodation we have around £21,000 savings to go towards a deposit for another house and no debts. We are trying to build our credit rating up from fair whilst in rented accommodation . How long until We can apply for a mortgage with this DMP on file, they all show as settled and didn’t enter any defaults. We are hoping to apply for a 5% deposit too is this possible? Thank you
Sara (Debt Camel) says
You really need to talk to a mortgage broker about this. There aren’t many 5% deposit mortgages on offer at the moment and a broker will have a better idea about what those lenders offering them will want to see.
Liam says
Hi Sara
Thanks for the article. Most detailed explanation of how credit scores work, I have found.
I have 6 defaults on my account ranging from 2-4 years old. I have managed to successfully raise 4 irresponsible lending complaints and the companies have agreed to remove the defaults and set up a payment plan which will be paid off in 6 months for all. I am awaiting a response from a 5th lender regarding this but I am hopeful of the same outcome. One lender refused and the ombudsman didn’t uphold my complaint so this will remain on my account until September 2026.
My question is, will my credit score improve much with 4 possibly 5 defaults being removed?
I am currently paying off my credit cards which will be fully paid in 3 months. I have a loan with a credit union that I pay monthly. No other credit out and no missed payments for over 2 years.
Thanks
Liam
Sara (Debt Camel) says
Getting rid of 4 defaults should make a difference. Getting rid of 5 would improve it more.
Michelld says
Hi Liam
I want to write a letter to remove my default which my advisor said was unfairly placed.
If possible can I ask for a copy of what you sent as I am a fish out of water, any support would be greatly appreciated and we’ll done for the results you have so far 😁
Sara (Debt Camel) says
Liam got defaults removed by making affordability complaints. See https://debtcamel.co.uk/tag/refunds/ which has template letters for those.
But that may not be what your adviser (who is it?) is suggesting.
See https://debtcamel.co.uk/get-rid-of-a-default/ for other reasons a default may be removed.
Michelle says
Hi Liam ! How did you manage to have these removed ! I would be interested to see the emails you sent ! I have 3 defaults that will drop this December but will have one very small remaining till 2025! If I could remove this then I would be able to get a morgage .
I have no other late payments.
Sara (Debt Camel) says
He won affordability complaints. See https://debtcamel.co.uk/tag/refunds/ which has articles on different types of debts with template letters
David says
My credit score a month ago (when I had 3 defaults) was 541 on Credit Karma, now they have come off, I have no record of any defaults (I have credit cards on 89%, no missed payments or anything negative) and it is currently 533 on Credit Karma. I don’t understand how having no defaults have decreased my score? Can anybody explain? I waited 6 years for nothing…
Sara (Debt Camel) says
That is a very high credit utilisation – working on getting that one down sounds key. Have you opened new accounts recently? Moved house? Are you on the electoral roll? Have you checked if your account is linked to any other accounts?
David says
Thanks! I am trying, but apart from that there is nothing else to put my score in the “Very Poor” category.
I am on the electoral roll, all my addresses are correct, no new applications or accounts in the last 8 months and I haven’t moved in the last 3 years. I am also not financially linked to anyone. The only major change I’ve had is 3 defaults being removed from my credit file, which seems to have decreased my score.
Sara (Debt Camel) says
well I am more surprised that your score was 541 before with a high credit utilisation and 3 deafults…
Tony says
Hi. I was recently found out my credit card has been closed when a transaction failed but still haven’t been given a reason by the bank, i also haven’t received a letter. I have not been charged interest on the card yet this year so I continued to make the payment requested by them. I’ve now spoken to 15 different people at the bank and nobody can tell me why the account was closed and having checked my credit reports the account is now suddenly showing a zero balance. I did get a statement for this month again requesting a minimum payment but no interest charged again.
I have now got through to someone who claims the account was closed in error, and I can go through a complaints procedure. Really not sure what I’m best off doing now and I don’t understand why the debt appears as zero on my reports. Any advice would be greatly appreciated.
Thanks
Sara (Debt Camel) says
when was the last time they sent you a statement? when was the account “closed” according to your credit report? What should the balance have been?
Tony says
I was last sent a statement 2 weeks ago. According to my credit files updated on 28/02/23 the account balance is zero but should be £7320. It is still showing the account as open on the reports at the moment. Originally they told me I could set up a payment plan to clear the balance but now they have told me they want to reopen the account as it was closed in error.
Thank you
Sara (Debt Camel) says
why are you not being charged interest – was this a 0% deal?
Tony says
No idea. I have been paying interest for years then it just stopped In December. Originally it was a 0% but its long since run out. My statements have just said no interest charged on this statement!
Sara (Debt Camel) says
well unless you want to start paying interest, could you just carry on paying on the statements as they arrive?
Obviously if they want to add a lot of back interest or mark you as in a payment arrangement of your credit record, then you need to complain. But so far this is just to your benefit , isnt it?
Tony says
Yeah I mean I’m fine with the account being closed but I’d struggle to make the minimum payment at the moment so I was hoping to set up a plan. I’ve been told now though that it was closed in error and i cannot do this. If I reopen the account I guess the interest would start again so its definitely not in my best interests. I just don’t understand why my credit reports are all saying the balance is zero, can hsbc go back and change that now? My scores have jumped up loads due to the utilisation dropping so dramatically.
Sara (Debt Camel) says
“I just don’t understand why my credit reports are all saying the balance is zero, can hsbc go back and change that now? ”
if it is an error, then yes they can
This is a large balance. Had HSBC increased your credit limit when you were only making minimum payments? Did you have any other debt with them?
Tony says
This is my only debt with them. They increased my limit over a period of a few years and kept on giving me 0% transfer deals. That’s why the balance got so high. They haven’t increased it for a long time now and I’ve only ever made minimum payments.
Thanks
Sara (Debt Camel) says
That makes it unlikely you will be able to win an affordability complaint.
Sara (Debt Camel) says
If you can’t afford the minimum payments you need to ask for a payment plan and for the interest to be frozen.
Tony says
I have asked to start a plan but now they want to reopen my account first.
Thanks for your help.
Sara (Debt Camel) says
It was clearly an error for them to have closed it. I’m sorry but that balance isn’t going to go away.
You need a payment plan set up with them freezing interest.
Abena says
Hello Sara,
My Equifax score jumped from 796 to 845 this morning, following a removal of default. The only remaining negatives are late payments, the last was 27 months ago. My question is, does the number of late payments impact on the number of points your score is decreased by and will the points gradually increase as and when they fall off?
Sara (Debt Camel) says
yes the number of late payments matters, so your score will gradually improve as they drop off
Abena says
Thank you so much Sara, that is good to know!!
I got the shock of my life when I was advised this week that late payments on closed accounts, remain on files 6 years after the account has been closed rather than when the late payment occurred. What?? So where I have the following in late payments, they come off as follows. As yhese are settled and closed, can it be challenged?
Moneyway – 3 late – until Sept 23
T-Mobile – 1 late – until Nov 23
LRUK – 1 late – until Jan 2026
Sara (Debt Camel) says
what is LRUK?
Abena says
La Redoute Uk
Abena says
These are still open, so guess i cant do anything or can I?
Klarna – 3 late – until Jun 26
Next – 1 late – until Dec 26
Sara (Debt Camel) says
The sooner they are repaid, the sooner your credit record will be clean.
You can look at affordability complaints against those. Did Next increase your credit limit too high – see https://debtcamel.co.uk/refunds-catalogue-credit-card/. Klarna you can complain about their long term loans, not the pay in 3 – use https://debtcamel.co.uk/refunds-large-high-cost-loans/. I haven’t seen anyone try a complaint against Klarna.
Sara (Debt Camel) says
There is nothing that can be done about these unless
1) you think the marker was wrong and you did not miss a payment
or
2) if you could win an affordability complaint, but those look like quite old problems so it may not be easy. See https://debtcamel.co.uk/tag/refunds/
Abena says
Thank you Sara
Abena says
Hello Sara
It’s me again!! As off Nov this year, my Equifax is 858 and Experian is 982. I’ve never seen my credit report look so good. I am satisfied but just want to check something.
Negatives I have left will be removed as follows;
LRUK –1 late – until Jan 26 (closed) but late payment occurred 2016
Klarna –3 late – until Jun 26 – L’term loan
Next –1 late – until Dec 26
It looks like 2026 is the year. I know you have advised how I could deal with these earlier approve although no guarantees. I just wondered, have you since had anyone challenge Klarna, and can I apply the refund request for all three above?
Sara (Debt Camel) says
I think I have already answered these questions in the thread above.
Steve says
Is there any official documentation available regarding what the FCA or other relevant bodies class as ‘Adverse information’? Have a case currently with FOS, lender has admitted irresponsible lending but insisting on reporting a ‘payment arrangement’ which is damaging my credit file significantly.
Sara (Debt Camel) says
so your complaint with FOS is to have the payment arrangement markers removed? HAs an adjudicator/investigator started looking at the complaint?
Steve says
Got a really inexperienced adjudicator currently who has sent her findings, she. Doesn’t quite understand (nor does the business) that a ‘Special arrangement’ damages your credit profile- nor does the lender by the looks of things (New Day). They’ve admitted irresponsible lending but stating it’s not adverse reporting to mark it like that. Was hoping I could show them some form of official documentation to prove so. I proactively made the lender aware (evidenced in dsar) that I had a gambling disorder and they continued to increase limits and offer additional brand of card. Before I insist on Ombudsman, was trying to speed things up. They have been terrible to deal with and my FOS adj is part time :(
Sara (Debt Camel) says
If they increased your limits after you had told them that you had a gambling problem and asked them not to, you could also ask the Ombudsman if the balance could be written off.
Steve says
That’s a good point that I hadn’t thought of. I may ask for that now. I can categorically prove I made the business aware and they released confirmation to me. I feel as though I would be better off with a full time Ombudsman reviewing the case in its entirety. The adj has made some strange decisions and I feel like she’s really disorganised. Thank you for that point.
DBUK says
Morning Sara
I’ll be looking to make a Mortgage Application in Summer 2024 – Having read other information on your website, it’s lead me to review my current approach of repaying my £1200 default. Currently I pay £50 p/m with the original plan to make additional payments to clear it before the end of the year.
I read that to put myself in the best position (under my circumstances) I’d be better to clear that debt quicker so that it’s been fully satisfied for 12 months before the mortgage application. The default will be over 2 years old by then. I realise this doesnt give me any guarantees, just improves how lenders may see me.
I’ve got the opportunity to take 0% Credit Card or Personal Loan which would allow me to clear it straight away and ensure its been cleared for 12 months, however, I know the new application might also affect my chances of being accepted for a mortgage. So my question is, in your opinion, would I better refinancing the debt so the default is is Satisfied for a full 12 months, or significantly increase monthly repayments to the default.
Sara (Debt Camel) says
How large a deposit will you have, percentage wise, next summer?
Jordan says
Hi Sara, thinking of meeting with a mortgage broker for a professional mortgage once register with my professional body. Been working hard on my scores – Experian 999, Equifax 871 and TransUnion 633.
Many years ago I defaulted on a Credit Union loan of £5k. Been gradually paying this off to £1k. It was originally reported as default, then changed to late payments when I started paying back. Raised dispute, there was a note added to my file. Then all of a sudden the note disappeared and so has the credit Union loan. When I pay the final balance, how do I stop them from making a report? Or do I do nothing and hope it says as is?
Also side note question – I’ve been on the electoral roll for 6 years, TU say 6.5yrs is optimised – how much will my score go up by?
Many Thanks. J
Sara (Debt Camel) says
As it’s not clear why the debt has dropped off the record it’s impossible to guess what happen if you pay it off. I suggest you tell the mortgage broker about this.
I’ve been on the electoral roll for 6 years, TU say 6.5yrs is optimised
do you mean how much will it go up in another 6 months? A tiny amount I would have thought. Don’t obsess about your credit score, small changes may no difference to the chance of a mortgage.
Paulina says
Hi Sara
I have 2 ccjs, one will drop off this year 25 August and the other in 2025. Will my score remain the same or will there be a slight improvement as 1 drops off?
Looking to get a mortgage from September this year, hopefully.
Thanks
Sara (Debt Camel) says
Has the second CCJ been repaid?
When it comes to mortgage applications your credit score means nothing. Mortgage lenders will have a policy on whether they ever lend to someone with a CCJ in the last 6 years.
Lyndsey says
Hi Sara,
I hope you can help. I have a ccj due to drop off on August 2023 and as of then my credit file will be clear apart from the 2 missed payments last year. How long does it take for these to lose there importance? Or will I need to wait for them to drop off?
Furthermore, United utilities set me up three years ago on a IVA. I had no idea what I was, or that it affected my credit score. They just said it’s a payment plan. Its only recently that I’ve found out it looks bad on my credit file. I’m so upset as if I was aware I wouldn’t of let it happen. Is there anything I can do? I’m hoping to get a mortgage in the next 12 months.
Sara (Debt Camel) says
They get less serious after 2 years and then again after 4 years. After 6 years they should not affect the credit score calculations.
An IVA is a form of insolvency like bankruptcy – it isn’t possible for United Utilities to have set you up on this. They may be using some other name for a payment plan
Natalie says
Will my credit score increase if I pay off my CCJs? Or will I just need to wait the 6 years for them to completely be removed from my report?
Sara (Debt Camel) says
your credit score won’t change, but there may be more lenders that are prepared to lend to you. Lenders do not use the credit score number that you see.
Ben says
Hi, I’ve just had a hard search added to my credit report due to switching broadband providers (I did not withdraw from the previous contract early) and it dropped my ClearScore rating by a massive 76 points! Is this normal? I’m positive that there haven’t been any other changes at all that could have affected the score. Should I be concerned?
Sara (Debt Camel) says
That does seem a large change. But hard searches normally correct themselves after a few months.
Ben says
Good to know, thanks. I’ll give it some time.
Ruby says
My CCJ has finally been removed and my score moved up +159 points to 890 on Experian. Still 21 points away for a good score. No missed payments but I do have a car finance to pay off and 2 credit cards that I still to lower the credit utilisation.
Lisa says
Hi Sarah,
It is very helpful to read through all posts here. My only default will reach its 6 years tomorrow. Finger cross for an improvement on my Credit Score as I need to apply for an mortgage soon.
Have a few questions to ask:
1. Link mobile, landline/broadband, car insurance payments to credit report will help with credit score? Would you suggest that?
2. How important credit score is to mortgage lenders in general if they all have their own set of score panel for decision making?
3. Besides applicants credit score, what else are Mortgage Lenders looking at?
Thank you :-)
Sara (Debt Camel) says
Has this defaulted debt been repaid?
What is currently showing on your credit records – have you checked them with all three credit reference agencies, if not do this now, see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how.
Lisa says
Just a quick update:
I had only 1 default account from 12/7/2017, and had it cleared this Jan. Since then, its status was updated from default to settled on all 3 credit ref agencies sites, but didn’t do anything to my credit score.
Checked my score this morning (12/7/2023, 6th Anniversary!), Experian updated my score straightaway and I am from Fair (yesterday) to Excellent now. The drop of default account gave me extra 185 points. However, no updates on the other 2 agencies reports yet. I am going to ring them and find out when will that happen. Finger cross as need to apply for mortgage asap.
Craig says
I’m sure the others will follow suit, worse case there are some mortgage providers that only use Experian ;)
T says
Failing to disclose relevant financial information (ie Have you had any CCJs, and you say no) constitutes as mortgage fraud.
Sara (Debt Camel) says
I dont think anyone is suggesting that.
Corey says
Hi, thank you for the clear article.
My landlord is about to sell the house. He is ready to reduce the price for me. The thing is that I’m self-employed. I had a very bad time the last year of Lockdown and for a year after that. the last tax year is a lot better.
During that period of bad income, I took some debt and I started a DMP 9 months ago. I have a couple of my creditors that reported me on my credit score as default last June (2023).
Yesterday I paid my DMP in full. I have no credit and no overdraft. How long will it take to show on my credit report?
I know I need to wait for 6 months for my defaults to be accepted by most lenders, but I was thinking that if I showed that I manage to pay all my debt in full, some lenders might be more inclined to give me a mortgage.
Thank you for your time
Sara (Debt Camel) says
You need To talk urgently to a mortgage broker.
Lisa says
My situation was slightly different as I was not on DMP, but would like to share what happened to me.
I had a default since 2017. It was cleared this Jan, 6 months before its 6 years anniversary. I thought by clearing the default, my credit score would have a boost immediately from Fair to Good at least but NO! Nothing changed except the status of Default Account from Default to Settled. At that time, no high street bank would provide me mortgage except private lender with an interest rate just over 9%, and much lower amount than I needed.
My credit score only updated on the date reaching its 6th Anniversary on Experian, and a week after on the other 2 platforms. That default account is no longer showing on my credit report since then.
Hope you will find a lender and secure the house!
PM says
Hi Lisa, Did you manage to get a mortgage at a ‘normal’ high street rate? I am in a similar position to what you was, i have a default that is fully paid and due to be removed 01/11/23 and will be looking into getting a mortgage for a new property as soon as the 6 years is up.
Michael B says
Hi Sara,
I have 4 defaults that are all due to pass the 6 year marker between March and May 2024 thankfully. I’ve been relying on credit a lot recently and have high interest credit cards (3x 49.9%) and loans (1x 34.5% and 1x 79.9%). . I can afford the repayments but I’m getting nowhere clearing them due to the interest – the total balance I have on my credit cards is £8,150.
I’ve been hoping that when my 4 defaults drop off I’ll be offered better credit for balance transfers or lower interest loan to combine debts, do you think this is a realistic hope? Or will the fact that I have high credit utilisation and high interest rates scupper this? Thanks
Sara (Debt Camel) says
Have the defaults been settled?
Michael B says
Hi Sara, Yes the defaults have all been settled and I’ve had no missed payments since the defaults
Sara (Debt Camel) says
how large are the remaining loan balances?
Michael B says
One is £4,670 and the second is £4,150
Sara (Debt Camel) says
And have the credit cards increased your credit limit when you were only making minimum payments?
Because it looks like some lenders have lent you a lot more than was sensible. Not because of the old defaults but because you already had a lot of current expensive debt.
I would be surprised if you can get much of your debt refinanced at a low rate if if your credit score improves a lot.
I think you should look at a debt management plan (see https://www.stepchange.org/how-we-help/debt-management-plan.aspx) to get the payments reduced to an affordable level and the interest stopped on the cards. And consider affordability complaint against some or all of the cards and loans – see https://debtcamel.co.uk/tag/refunds/ – wining any will really speed up the DMP.
And there is no reason to wait until next year – the sooner you get this under way, the sooner things will be under control.
Michael B says
Many that’s Sara, I will have a good read through this information and take it from there. I’ve not had a credit limit increase for over 12 months on my cards but received regular increases in the year before.
I took out my last loan in June this year £2,250@ 79.9% with 118 money out of desperation and I’m going to struggle to keep up the repayments
Sara (Debt Camel) says
then 118 is a complaint straight away. But you still need a DMP to get the high interest stopped on the cards. Talk to Stepchange and see what they suggest you should be paying a month to all of your debts…
Michael B says
Really appreciate this, thank you. I’m going to get a DMP arranged asap, I’ll contact step change on Monday morning.
Last question – what would happen if I made a complain to 118 and it was upheld? Would I need to return the loan amount in full straight away? I would be unable to do that so would be wary of complaining for that reason
Sara (Debt Camel) says
If a complaint about a current loan is upheld, your balance is reduced so that you only have to repay in total the amount you borrowed, no interest.
Iain says
I use the Clearscore app to track my credit file.
Last week I was shown a selection of cards for which I was pre-approved. I clicked through to the Capital One website, where at the very top is states clearly ‘Apply and we’ll say yes. Congratulations!”
I’ve been back to check and there’s a small question mark, which when clicked explains that they still have to do fraud and identity checks. I missed this at the time of application.
So I went ahead and was told I was successful. What my credit limit is. And that I could expect a PIN in a few days, followed by a card a few days later.
Nothing turned up and I received no emails either. Not one, about acceptance or rejection.
So I called. They told me my application was declined. They knew nothing about Clearscore.
I explained that both Clearscore and Capital One themselves had guaranteed I’d be accepted, and that I wouldn’t have gone through the credit application otherwise. Therefore I want the hard search removed from my credit file.
After going round in circles for half an hour, I gave up. Am I wrong to think that this search should be removed? I’ve been so careful to not apply for credit for quite some time. I only applied because of the guarantee, I thought it might be useful for emergencies.
Sara (Debt Camel) says
I think it is worth complaining about this, to both Capital One and ClearScore. Ask for £100 compensation and for the hard search to be removed – say you were mislead and would not have applied without the “guarantee” offered. Say this is not fair and not a good outcome for a retail customer, breaching the new Consumer Duty.
These “free” credit reports are turn into a big problem.
Carl says
Hello, I have a CCJ about to drop off early December 2023 , How many points will my score go up by when removed? Thanks Carl
Sara (Debt Camel) says
What other problems will still show on your credit record when it has gone?
Carl says
Hi Sara
Only the electoral register to be added that is all no other issues thanks,
Carl
Sara (Debt Camel) says
Then perhaps about a 150? Come back and say what happens!
Sally says
Hi I’m currently looking to finance a car buy my credit score on Experian is 659
I’ve had 3 defaults from 2021 one which is settled for £150 and another for £1000 and the last one which is dropping off in December for 900
Experians predication is that by may I’ll have a fair credit score I was wondering is it possible for my credit score to climb up any sooner and also would I still be able to finance one, I work full time so income isn’t an issue.
Sara (Debt Camel) says
Do you have credit card balances?
Sally says
No I’m currently doing save money a month scheme with loqbox which is showing up as a credit card with a 2,000 limit with £5 balance
Sara (Debt Camel) says
A default from 2021 is dropping off in December – really? Do you mean It will be paid in December?
Is this your first car? How much do you think you can ford to spend a month on finance?
Sally says
A default from 2017 is dropping off in December but I still have 2 defaults from 2021
450 a month and I have a deposit of 3500
Sara (Debt Camel) says
Well one old default dropping off will help your score a bit.
But nothing is going to help the 2 recent defaults unless you can win an affordability complaint about them – this wont work if they were utility or mobile defaults – see https://debtcamel.co.uk/tag/refunds/.
Have you considered saving up the £450 a month, which will mean that you have over 5k saved up so you could just buy a second hand car not get it on finance?
Sally says
Both defaults were because of struggles through the pandemic would that be a justified to dispute the default? But 1 has now been settled
Sara (Debt Camel) says
Well you could try, but that seems unlikely. A default simply records that you didn’t pay the debt, not that you were to blame for this.
sorpfp says
Thought I’d share my experience to help others in a similar situation. 18 months ago I had a very poor credit score, was £20k plus in credit card/ over draft debt, had recent late payments on my file and 2 defaults (small, settled ones from being unorganised)
I wrote on here because I wanted encouragement that if I cleared my debt I could still get a mortgage. I cleared the debts by summer this year, which helped me get my credit score over the last year go from very poor to excellent 999. I applied via a broker for a mortgage in august, got approved by Coventry, Halifax and eventually went with Accord who had a good rate, were very very quick and flexible and am about to exchange on my first home.
The credit score that you see seems slightly pointless as I still saw some rejections with an ‘excellent’ score, so I’d just use it to highlight to you what to work on, rather than obsessing over it like I did.
Good luck everyone
Caroline says
Can you tell me is it better to settle a ccj or to concentrate on any defaults I may have to improve my score when applying for rented accommodation.
Sara (Debt Camel) says
Neither is going to improve your credit score I am afraid.
Can you say what debt the CCJ was for? And what the defaults were?
Michael B says
Hi Sara,
Just wanted to update you with this. I made an affordability complaint to 118 for my loan that I took out this summer over 24 months. They’ve upheld my complaint and removed all interest, so now I only have to twist the capital. Many thanks again for your help
Mrs C BRIGHTON says
Hi, I have 3 defaults on my report, two will be gone by the end of this month and the final one will be gone at the end of March 2024.
I will remain with a fairly high credit utilisation although my payment record will be perfect for 48 months at this point too…
Will I experience a significant jump up in my score? I want to get on my husbands Nationwide mortgage.. no extra lending just to share the 111000 mortgage.
Currently score is POOR.
Sara (Debt Camel) says
So you had missed payments but they will be over 4 years old?
When does the mortgage fix end? At that point your mortgage rate will probably be going up a lot. Does your husband also have debts? Car on finance?
Mrs C BRIGHTON says
Hi Sara, thank you for your reply.
Yes the missed payments will be four years old once the last default drops off in March 2024. The mortgage is fixed until Aug 2026.
Husband is debt free, no finance and just one credit card of which he is utilising less than a third of the 6000 credit limit. His score has always been good.
The car is leased via my work salary sacrifice scheme so deducted at income source.
Sara (Debt Camel) says
OK so you won’t be able to remortgage to get your name added until the fix ends. (Well in theory you could do this earlier, but this would mean paying an Early Repayment Charge and also switching to a much higher mortgage rate, so it wouldn’t be sensible.)
So your aim is to pay down the credit card balances to get your utilisation down by Aug 26.
Stuart B says
I keep track of my credit score through ClearScore and Credit Karma who use Equifax and TransUnion for my scores which are 701 on Equifax and 569 on Trans Union.
I have 1 settled default from Feb 2018 which should drop off my report in Feb next year and now have over 48 months no missed payments on any account. I have 2 credit cards, Capital One with limit of £1000.00 and Aqua with limit of £5350.00 and zero balance on either. I only use the credit cards to buy fuel once a month and pay the balance in full on the next pay date. I have a loan from our local credit union with a balance of £4500.00 and all payments up to date.
My question is, when the default drops off my file, what might I expect the credit scores to improve by?
Sara (Debt Camel) says
your Equifax score may go up to around 900
Stuart Brodie says
Well the default dropped off my file at the end of last month and my scores went up to a miserable 750 on on Equifax and a depressing 586 on Trans Union, both scores are still only in the fair range. I am at a complete loss of what else I can do, my circumstances are still the same as they were at the time of my original post, no new debt, no new hard searches, all payments being made on time.
Looking at some other posts here, some people seem to have much higher scores than me with very similar circumstances.
Clear Score and Credit Karma offer tips to improve my score by taking out another credit card and using them more which is something I’m reluctant to do.
I emailed Trans Union and asked them why my score only went up by 8 points when the default dropped off and this is the reply I received – ‘TransUnion cannot determine why the score increased by a small number, we do not have this data. Creditors may look at a score differently based on a scoring model and criteria that is used. Please note credit scores tend to improve overtime while you maintain good credit standing.’
I am at a complete loss now. I really don’t know why my score is not at least in the good bracket or what else I can do to get it there and it’s kind of important because I’ll be needing to finance a car later this year and there is a big difference in APR rate between Fair and Good.
Any advise or help would be welcome
Sara (Debt Camel) says
The transunion score is better than the Equifax one as it is cored out of a lower number. .
The missed payments – are they on debts that have been settled? How old are they now?
A credit builder card is unlikely to help you at all – you already have the Capital One and Aqua cards. You are paying those automatically by direct debit?
Stuart B says
Hi Sara
The 2 missed payments are from 2018 and 2019 – both accounts settled and closed.
Both credit cards are set to pay balance in full on my pay date by DD, as I mentioned, I only use them to buy fuel – approximately £180.00/month and they pay when due so that I don’t incur any interest charges. Up to 2 years ago, I had higher balances on both cards and was only paying a boosted payment, but the interest is high on both so I cleared them off and now only use as mentioned.
Sara (Debt Camel) says
So you are doing all the right things. The loan payments are going out. You are paying two cards in full every month. Things will get better and there is nothing in particular that will speed this up.
Carl Ingram says
Hello
My CCJ dropped off my credit reports on 7 December. My Equifax went up only 22 points and Transunion up 6 points. I thought my score would go up a lot more?
Many thanks
Sara (Debt Camel) says
It depends what other problems are showing on your reports.If this was the only problem, then I would have expected the scored to increase more. If there are a lot of other problems then one disappearing has less impact.
Carl Ingram says
Hello
Only electoral roll to be added that is all
Lauren says
Hi all,
From past experiences from anyone who has been in a similar situation, how much did your score go up once a default was removed? I won an unaffordable lending complaint with the company and they have removed the default account, just waiting for it to show on my report!
I have no missed payments/adverse information on my score, 2 credit cards with a combined limit of £1750 with a combined usage of 17% which are paid in full monthly and that’s it.
Equifax currently 545, Experian 618 and transunion 572
Sara (Debt Camel) says
Was this your only default?
Lauren says
Yes it’s the only default on my report!
Sara (Debt Camel) says
I think you need to look at the details of your Experian and Equifax credit records. Those score look surprises if the only problem showing is a single default.
Lauren says
I think this is due to having an awful credit score at the beginning of this year.. thanks too all your advice on here, I have managed over the last year and a half to have 4 defaults removed, missed payments and a CCJ, the two credit cards have been taken out in the last 6-8 months in order too help improve my score and the last default is also being removed so this is why my scores are still quite low in hindsight. My report now shows 6 years of no missed payments and the 6 months worth of low credit utilisation and on time payments is slowly building my report back up, I have for the first time in 2 years been offered credit at most places (although not taken anything out bar the credit cards to help build my score). Do you think due to these circumstances, the removal of the last default won’t have that much of an impact on my credit score and it’s a case of being sensible and waiting for it to rise over time ? :)
Sara (Debt Camel) says
Well you only needed 1 credit card to improve your score. Are you repaying them both in full each month?
But problems that have been removed should improve your score immediately. Not continue to drag it down for a while.
Lauren says
Yes pay them both in full each month, I only use them for fuel, one of them I’ve not used for a couple of months so has a £0 balance.
Hmm okay, well the last default be removed in my January updates I should imagine so I will just wait to see what happens then!
Papa15 says
Hi Lauren
How did you managed to have your default removed? I’m trying to have my only default removed.
Lauren says
Sorry I only just saw this – I won an irresponsible lending complaint with New Day. I went to the FOS but before they had time to investigate, New Day came back and agreed to remove the default as part of the complaint settlement :)!
Papa15 says
Nice one! 👍
Before covid my business was doing well.
During covid it has been an other story.
I contracted some debt and at the end of the last lockdown I thought that things would improve quickly to pre covid. 😅
It was building up but very very slowly. I then struggle to pay back.
I contacted DFH for DMP. It was very smooth.
I had 2 credits card and an overdraft with my bank account to pay back and I was in that spiral of paying back the credit cards and using them again yo be able to finish the month.
The DMP was smooth, however for one of the credit card, I had £13 to pay back minimum.
The DMP negotiate to go down by £2… I didn’t pay attention. Thay was my lowest credit card balance.
So the credit card company agreed and they said that becaise I wasn’t paying the minimum payment, they would put me on default of payment. I never been aware of this by the DMP company or the credit card company.
After a few month, my business was good enough and I managed to pay everything in full, all my credits!
Then I saw the default of payment a glfew weeks ago.
I called the credit card company and they told me that for £2/month I was under minimum payment and they put me on default.
I don’t know if I can have it removed 9r not. The DMP never communicate that information with me. I would refused the deal if they did, or accept the deal with the other creditors and just pay an extra £2/month to avoid the default!
Sara (Debt Camel) says
I am sorry that you fell into the clutches of a commercial DMP firm that charged high fees and obviously didn’t explain the credit score implications to you properly.
You could ask the lender to reconsider your credit record and change the default to a payment arrangement as the DMP was so short and you were never in arrears by 3 months. But in practice this won’t make much difference to your credit score.
Paul says
Hi,
I have a CCJ on my credit file, filed in March 2018 and satisfied in October 2019 (I paid in installments).
Would this come off my credit file in March next year or is it 6 years from the satisfied date and do I need to approach anyone to have this removed from my credit file? Thank you for any help on this.
Sara (Debt Camel) says
It will come off automatically in Match next year
Reese Smith says
Hi sara, i have 2 ccj’s on my account. One coming off January 2024 and the other in January 2025.
My score is 612 on clearscore, 545 on credit karma and 568 on Experian. Will my score go up in January 2024 or will i have to wait for the January 2025 CCJ to come off aswell for my score to go up? And how long does missed payments affect a credit score? Thanks
Sara (Debt Camel) says
Apart from the CCJs, what is the rest of your credit records like? Defaults? Missed payments? A lot? How old?
Reese Smith says
Hi thanks for your reply,. I dont have any defaults, my last missed payment was 2 years ago.
My credit utilisation is always below 10 percent and all balances paid off every month in full..
Just 2 ccj’s left, one expires in January 2024 and the other in January 2025..
Thanks
Sara (Debt Camel) says
Ok then your score will go up some in January and then a lot more next January. Missed payments hurst your score 6 years, but the effect gradually reduces as they get older
Danny C says
Hi
Firstly, great website and thank you for the wealth of advice gained from it.
I do have a question in relation to a CCJ which has recently (as December) fallen off my credit file after 6 years.
I was expecting my credit score to increase significantly but has yet to do so. How long does it usually take for this to happen?
Any guidance you can provide would be greatly appreciated
Sara (Debt Camel) says
what other problems remain on your credit record?
Danny C says
Thanks for your response.
I have 5 missed payments in the past 2 years, but none in the past 6 months.
I have 4 defaults (between 2020 to 2022)
Sara (Debt Camel) says
in that case losing the CCJ isnt going to make much difference… Things are going to be bad for a few more years
Lou G says
Hi
My credit score is shot!!
Been struggling to rebuild it for years and can’t get about 550.
Discovered today that I have a default for £24! It’s not a default, thankfully I have email evidence it was an error from a well known mobile phone company and it should have been removed in 2020!! Despite telling me they removed it they never did, so I am mad as a wasp. It is however due to be auto removed at the end of next month… but I am addressing with the mobile company as I will have paid higher interest on loans and CC due to low credit rating and should this have been sorted in July 2020 life would be good.
I am hoping at the end of next month it vanishes, but it has significantly affected me for 4yrs!!
It suggests above my score could jump 100+ overnight is this possible?
I have no other credit issues, all is in order and everything paid on time and credit not over utilised. I did have credit issues years ago when married… but this is 10+ years ago.
Sara (Debt Camel) says
550 – which report are you looking at?
Lou g says
Experian is 550, credit karma 542, clear score 829
Sara (Debt Camel) says
I think there is some other problem showing on the Experian – have you looked at the details?
Lou g says
Yes nothing other than this default
Sara (Debt Camel) says
What Experian report are you looking at? Because one old default should not cause such a low score.
Lou g says
I have the ap and paid £14:99 for the full report to dispute this £24 say on my account WHICH SHOULD have been removed 4yr ago and was not. It was not money owed but an error by a communications provider and I have the evidence of this…. Been struggling to raise it since.
Sara (Debt Camel) says
so you have an Experian Credit Expert report? Can you check every entry in it against what shows on Equifax and TransUnion reports – because I think there is something else in the experian report that is a problem… it may be a link with another account?
Lou g says
How do you mean a link with another account?? There are previous accounts listed on there but closed and settled, which name the ex husband (he was the idiot that put us (me) in mega debt) .
If I know what I’m looking for ?? But from my perspective all is in order and controlled or settled but this damned default
Sara (Debt Camel) says
so accounts with defaults or missed payments still harm your credit score even when they have been settled.
Lou g says
There is nothing showing, most have a plotter of two years all paid on time.
No other defaults etc or anything showing
Sara (Debt Camel) says
I have no idea why your experian credit score is so low, so I can’t guess how much it will improve when this default goes.
Tarela says
Hi, Need some clarity on missed payments
Entered an arrangement with my loan provider to make reduced payments thinking it was better than no payment at all but it is showing as 4 months of missed payments on my MSE/Experian file. Worried that when I go for a mortgage in 2 years with my fiance it will be an issue. Any advice would be very appreciated
Sara (Debt Camel) says
Yes this will make it very difficult to get a mortgage at an OK rate.
What should the payments have been and how much are you paying? Who is the lender?
How much other debt do you have that you are Paying normally?
Tarela says
The amount should be 795 but I’m paying 194 until March when I resume the original amount. Loan will be paid off by March 2026 I look to pay in June/July 2026. The lender is salary finance. Got credit card debt that I’m also clearing
Oh and I have my current mortgage I’m paying off
James A says
My score with trans union is currently 550 with some defaults as I’m a long way through a DMP (1k left to finish it) and a CCJ. Any guesses how much the CCJ coming off will increase my score? And will it be removed on the date it was filed or the date it was marked as satisfied? Thanks
Sara (Debt Camel) says
it will go 6 years after the date it was added.
if you have a lot of defaults left, the CCJ going may not make much difference.
James A says
Thanks. :( In a way I wish I’d never taken out the DMP as now it shows as defaults which are 4 and a half years old but combined with the CCJ which drops off in July this year they are just making life impossible
Sara (Debt Camel) says
Well they will be gone in 6 years. Without the DMP you would probably be owing a lot more than 1000 at the moment.
Hassan David says
Someone who works for Lowell but knows me personally has been checking my details even though Lowell have been struggling to find my real address, I don’t apply for credit or do anything which can result in a credit check or he was like joking with me saying Lowell has methods of tracing debt you will not imagine, I found at later he asked my sister if I was leaving with my mum which I was just in general conversation then about 4, 5 weeks later I get a default from Lowell with my address on it which nobody could have known about. I’m definitely not going to pay them I have about 4 defaults, and a could of ccjs with companies, I’ve got plenty of money to pay them off but I’m not going to pay up. It’s not going to improve my credit score so it’s foolish for me to pay up. I just wait for 6 years and everything drops off anyway so not much of a big deal for me, since I can get loans and credit form family member thankfully I have a well off family. However recently I applied for car insurance but the quote came back high I’m not going for the monthly option is my credit score having an impact on the insurance quote? Please advise…
Sara (Debt Camel) says
Possibly. Apparently statistics show a poor credit score means a driver is more likely to make a claim. Some insurers take this into consideration and increase the premium accordingly or may even refuse you insurance.
PS everything does NOT drop off after 6 years if the creditor goes for a CCJ after 5 years – that is on your record for 6 more years. Also if they think you can afford to pay, a CCJ can lead to an attachment of earnings order or bailiffs.
Alun Hughes says
Hi,
I have a credit score with experian of ..696
I have a credit score with clear score of..678
I have a credit score with Totally Money …562
I have a fully satisfied C.C..J from April 2019 and a fully satisfied default from feb 2018.
My credit limit is 7750 and have utilized 9%of that. My query is, why does my score keep yo-yoing up one month then dropping between 3 – 25 points the next month? I have never missed a payment since signing up to various CRA and paid off my 60 month car loan last November
Any advice would be appreciated
Sara (Debt Camel) says
Small changes are largely irrelevant. There is normally no way to work out what has caused them. Why do you care?
alex says
Just want to say thanks to this great site.
In two years using the tips and advice on here have reduced my credit card utilisation to 13% from 56% (£21k credit line), managed to combine and pay off other debts, all while never having my credit score damaged while doing so. Because of that I’ve been able to access good offers to eliminate interest and pay the debts off.
My Experian score is 996 -)
Thanks so much.
Nina B says
Hi. I have 7 defaults on file but 5 of them will be removed before the end of this year. Just so I’ve understood this article/comments correctly – these 5 defaults dropping off will not drastically improve my credit score? Instead I need to wait another 2 years for the remaining 2 defaults to drop off before I will see an improvement? My mortgage is due for renewal next year and I was hoping that having 5 less faults would help to improve my overall credit score? I have no other debts etc anymore (learnt my lesson the hard way!) so feel that it is only my defaults that are letting me down credit-wise. Such a long process.
Sara (Debt Camel) says
5 out of 7 and the other 2 being over 2 years will e an improvement.
Have the debts been settled? How long ago?
Nina B says
Thanks for your reply – that’s really helpful and reassuring! The most recent settlement was in 2021 but most were 2018. The 2 remaining defaults are both over 2 years as will be cleared from my file in 2026.
Sara (Debt Camel) says
Who is your mortgage lender?
Do you just need a new fix or do you want to borrow more?
Nina B says
West Brom Building Society. Understandably I wasn’t offered a mortgage from a mainstream lender at the time due to my credit history. I am only looking to renew my fixed rate (not borrowing more). Current Transunion score is 551 but as above I will have 5 defaults removed by Aug 2024 which I’m hoping will improve my score, but not sure by how much. My mortgage balance isn’t huge approx. £100k left. Thanks again for all of your advice
Sara (Debt Camel) says
The West Brom BS is a signature to the Mortgage Charter https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter
This means it doesn’t matter how mad your credit score is, they will still offer you a new fix.
You may also be able to remortgage with a different lender – many high street lender may not care about defaults that have been settled more than 2 years ago. Talk to a broker after August when the defaults have gone about what your options will be.
Ryan says
I’m planning to go for a mortgage in 2 years and just wanted some advice around Credit cards and credit scores.
The have 2 Credit cards.
– An Older one – Zable -2020 – have had high Credit utilisation at times but never missed payments etc. Credit limit is £700.
– A newer one – Capital One – 2023 – low Credit utilisation ever since I had it – Credit Limit is £200.
Would it be better to pay off and close the older credit card or leave it open, pay it down and reduce the credit limit to a more acceptable level in terms of credit scores.
I want to try avoid lowering my credit score as I’m at the stage now they are all going into the Fair bracket for all 3 CRA’s. (Or would closing the Older one down just lower my credit score temporarily- it is only being reported on 1 of the 3 CRAs so am I just overthinking it?)
Sara (Debt Camel) says
The best thing is to clear the balance on the Zable card – horribly expensive! And then leave it open, buying 1 small thing a month, worth less than £100 and repaying it in full automatically every month.
The Capital One card you also want to clear the balance on and the use for something small – less than £50 in that case. It would help your credit score if you can get Cap One to increase your limit to £250 or £300.
Do you have old problems showing on your credit record?
Ryan says
I have few defaults that are due to be removed off this year, (they were for a very low amount).
Periods where the Zable card had high credit utilisation- not within the 12months as finances/employment has significantly improved.
Other than them , nothing negative.
– I have a mobile phone contract as but, never missed payments, reducing that by 10% each month.
– the capital one I’m regularly keeping at or below 25% credit utilisation – but I plan to increase the limit to 250/300.
Sara (Debt Camel) says
Past missed payments and defaults matter to your score – past high credit utilisation doesn’t.
the kay for the two cards is to be repaying the balance in full each month and spending less than 30% of the credit limit. 1 small rging a month is faine.
Jane says
Hi sara i have a question about amigos i did not enter the scheme so therefore dont have a claim however i have a balance owing of 5k left and they are reporting missed payments each month will this continue even when it goes to debt collectors as its hurting my record i was told it defaulted in november 2018 but i dont have an actual default registered just the missed payments the debt agency dont really know either
Sara (Debt Camel) says
What debt agency?
Jane says
Oh i just mean normal national debt line they arent that helpful with my questions
Sara (Debt Camel) says
Shame you didn’t claim to the scheme. What are the rest of your finances like? Has your guarantor been asked to pay?
Jane says
No she made a claim and is awaiting refund and no liability so its just mine im just unsure what to do but how its affecting my credit file is bothering me and i dont know how to address it
Sara (Debt Camel) says
Well once this is all over, you are just left with the debt as an ordinary loan, as your guarantor will have been released. But your credit record will not be your main problem as the balance is likely to be sold to a debt collector that will go to court if you don’t make an arrangement to pay…
Kaye says
So I have 5 defaults on my account. 4 of the defaults are due to drop off in June/July and October. The oldest default is due to drop off in February next year . I have no missed mortgage payments and have kept up with my credit card repayments (none missed). My transition credit score is currently 534 and my clear score is 750. When will my score start to increase? Is it likely I will get into the ‘ok’ category before the last default drops off next year?
Sara (Debt Camel) says
How large a balance re you running on the cards? Have the defaults been cleared?
Kaye says
Hi Sara, so I have. £1000 balance on one card which has a £2000 limit. I’m paying this on time at £200 a month. I have an £800 balance on another card which has a £1000 limit. I’m not adding to this and paying £150 a month off. I also have another card which has a £1200 limit. This has a zero balance. I have a PayPal credit account which has a £500 limit and a zero balance. The defaults are still outstanding but I’m paying a token payment to them each month. Obviously the last one is due to drop off my file in February 2025
Sara (Debt Camel) says
If you can get the credit card utilisation down to under 30% on both active cards, I would expect you to be into the OK band. Depends a bit which report you are looking at. The band names are actually meaning less – no lenders use them.
The outstanding defaults will continue to cause you difficulty with mortgage lenders and any other lenders that use opening banking as they will still see the token payments you are making.
Neil Liver says
Hi. I have 1 CCJ on my account, it falls off in Jan 2025. I have 3 credit cards. 1 with zero balance and a credit limit of £1500, the other with a £3400 balance and a limit of £3500 the last one I’ve had for 9 years, balance of £4500 with a £9500 limit. I have an overdraft of £1250 that I am constantly in.Never missed a payment on anything for over 8 years. My clearscore number is 686 my experian number is very poor 266.
How much will my score improve when the ccj drops off and what else can I do to get a good score by Jan?
Thanks
Sara (Debt Camel) says
I think you need to look at the details of your Experian record – get a free statutory credit report – and compare then to your equifax records showing on clearscore.
It looks to me as though there is something more wrong on Experian apart from the old CCJ and some highish credit card utilisation. Until you know the details, it’s impossible to say what differenct January may make.
Neil says
I apologise. My experian score is actually 557 still in the very poor zone but not as bad as I had thought. I have checked my credit report and the ccj is the only negative. I will get the credit card usage down. I hope when the ccj goes in Jan my score will improve greatly to allow me to apply for a mortgage.
Thanks Sara
Liam says
Hi Sara. My credit score is currently 588 with experian and 840 on Clearscore, I believe the difference is due to my mortgage provider not reporting to experian. I have a Default and 11 missed payments from 2018 that will all be gone in the next month or so, how much of a difference do you think that will make?
No missed payments since, had a loan and credit cards that have always been repaid.
Thanks!
Sara (Debt Camel) says
That sort of difference is NOT just a mortgage not being reported.
Have you looked at the details of your Experian records? Get their free statutory credit report.
What is your credit utilisation like? The percentage of your credit card limit you are using?
JA Alderson says
My CCJ came off today. And my credit score hasn’t changed one bit. So disappointed :(
Sara (Debt Camel) says
That is because you have a lot of other defaulted debts.
What is the main reason you want a good credit score?
JA Alderson says
I think I have 5 defaults most of which are about 5 years old apart from one which im disputing with Yorkshire water which is a year old.
I need to replace my van and at the moment interest rates I’m offered are horrific and in the next couple of years would like to look at mortgages with my partner but worry if we get married my credit score will drag hers down when she needs to remortgage.
Sara (Debt Camel) says
Not having a CCJ may improve car finance rates a bit. Have the 5 defaults been repaid? If not are you making Monthly payments?
Getting married is not a “financial association” – it won’t affect her credit score unless you have a joint bank account or joint loan or joint mortgage.
JA Alderson says
Hi yes all repaid, I think they show as defaults as the payment on the DMP was less than the payment required by the original agreement?
Sara (Debt Camel) says
well the longer you can leave it before getting van finance the better your rate will be. If you expect to pay £300 a month for van finance, (say) start saving that amount up now, so that in 6 months or a year not only will your credit report look better as the defaults will have been settled longer ago, but you will have a bigger deposit.