The Ministry of Justice is consulting on the current processes in which someone has a judgment made against them without their knowledge. Finding a CCJ you knew nothing about on your credit record is a very unfair situation. People may only find out about a CCJ at an old address when their mortgage or other credit application is declined, or they fail a tenancy check. Here are some of the … [Read more...]
Defaults on your credit records
This page lists the main Debt Camel articles about defaults on your credit record, answering questions such as Can you get rid of a default? and Is the default date right?
Of course you often also need to tackle the debts themselves, your credit record may not be the most important thing to worry about. See Articles about old debts which looks at your various options, including whether a debt is "time barred".
What should the default date for a debt be?
A default badly damages your credit score, so how long will it be there? In Britain, the credit record rules say: the debt, including the default, is deleted from your credit record six years later after the first default. An example: a debt with a default date in May 2014 will drop off your record in May 2020. There are no exceptions to this rule. A debt which is marked as defaulted will … [Read more...]
Paying a defaulted account & your credit score
A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No! But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn't the only thing that matters! To start, it's good to know what your credit … [Read more...]
Should I get a loan to repay old defaults?
Mr N has asked: On checking my credit score I have two defaults on my account both with the same creditor. First default was on 11/11 and the second 08/13 for a total of £1,750. I am now able to get back on track and get a loan to pay this in full. If I write to the debt collector and say I can pay this off and they give me their guarantee to put fully settled on my credit record, is this the … [Read more...]
Is “settled” better than “satisfied” on your credit record?
A reader asked: My Noddle report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]
One less default – why isn’t credit score better?
A reader asked " I had some defaults on my credit record. The oldest one has just dropped off. It was over £7000 which I had repaid under a full and final settlement agreement. The other default left have three or four years left before they fall off but I've settled them all in full and they were also smaller than the first one that has gone. I thought with the big, partially settled debt … [Read more...]
Can I get a mortgage with recent defaults?
A reader asked: My partner and I have a combined income of £54,000, We have a deposit of £20,000 (inheritance) and are looking to become first time buyers in a new build property at a price of £210,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are … [Read more...]
Can I get rid of a default from my credit file?
This default is destroying my credit score - how do I get rid of it? This is a very common question! It's sometimes people ask if their finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Sometimes it is the default feels unfair in someway I will look at various cases to see what - if anything - can be done for each of them. But … [Read more...]
No calls or letters about a debt for years?
If its been four or five years since you stopped making payments to a debt and you haven't had any phone calls or letters for a long while, you may be hoping your debt has got lost or the debt collector has forgotten about it. This article looks at what is likely to happen as in 2018 debt collectors are taking more people to court for CCJs than they used to. If you have been making payments, … [Read more...]