Credit rating

[poppy160]

Hiya, I don't know if anybody can help me, but I was wondering about how quickly credit ratings improve after debts have been cleared? I was in £2,500 worth of Debt and managed to pay all of it off a few weeks ago. As I'm now pregnant, I was looking to get a Mothercare storecard just for bits and bobs. I was wondering if my credit rating would have improved enough for my application to be accepted? Or will it take longer?

Thanks

 

[x-kirsty-x]

I think if its been really bad (like in arrears) it takes 6 years for it to clear and start again.

If you mean you were in debt and were struggling to manage it then your rating may have been affected, but if you mean you were in debt and managed to pay it off without defaulting on the account then it should be fine.

You can view your credit report and credit score online, you get a 30 day free trial with Experian (cancel before the end and it doesnt cost you a penny). That should give you an idea of how creditors will make their decision on you.

Or you could just apply for the storecard and get an instant decision from them

 

[poppy160]

Ahh, really that long? Well, I had defaulted on a few accounts but they said they would be removed once the balance is paid, which it has.

Yeah I was struggling quite badly for about 9 months as I wasn't earning enough to cover all the repayments, then I got onto a debt management programme which made everything worse, I paid them £150 a month and they weren't even meeting some creditors minimum payments so a whole load of charges were put on the account, one balance doubled because of it, then defaulted.

haha I'm very tempted just to apply but it's so embarrassing when you get rejected I can't do it online cause the sites not working, so I'd have to speak to someone!

 

[glitzyglamgirl]

Bear in mind though that every application you make, wether rejected or not, is another black mark on your credit score. If you apply and are rejected, you'll need to wait another 6 months before you can apply again, so I would definitely check out your credit score online first.

Good luck!

 

[x-kirsty-x]

Tell me about it, I went through a debt management company once but I was paying them to do it which was money that could of gone towards my debts so I sacked 'em lol!

Did all the work myself and agreed payments with my creditors. I got myself into the mess and I got myself out, I definitely learned my lesson though!

They'll probably put a notice on your report saying the account is 'satisfied' which probably wont affect your chances of getting credit, or not much anyway.

Believe me, £2500 is NOTHING! I was in £18,000 debt (I've never admitted that before ) but I paid it off and in about 3 years my credit rating will be alright again

 

[HappyAlice]

I was in £18,000 debt

well done for sorting it out

what did you spend it on

 

[poppy160]

Well done! I wouldn't know what to do if I was in that amount of debt! Yeah Debt management is total B******s, didn't work for me, just made things worse. I understand what you mean when you say you've learned your lesson, I have too! I would like this card but it will only be for bits and bobs, my OH will be keeping a close eye aswell. But to be honest, I may hold off applying for a while 'cause I'm only 11 weeks gone so I have plenty of time to prepare I have applied for a credit report and they are gonna send some details in the post so I can view it! Not looking forward to it lol. Thanks for your advice xx

 

[x-kirsty-x]

I was in £18,000 debt

well done for sorting it out

what did you spend it on

More like what didn't I spend it on

My car, clothes, all the latest technology... I was young and naive and I thought 'Hey, people are handing me credit on a plate here!' without thinking about the future.

Then when I was 19 I realised I was out of my depth, I told my parents and they helped me with some of it but told me the rest was down to me. It was hard but I managed, some of it was written off cos I just couldnt pay it.

Only debt I have now is a few store cards but I always pay more than the minimum payment and I'm hoping to pay them off completely in a week or two.

One of my friends is in so much debt she's talking about going bankrupt, think she's in about £26,000

Credit can do so much damage, I wish Id realised that when I was younger

 

[poppy160]

That's my excuse, living with my parents not having to pay rent and thinking I could get anything and everything on credit. Then I decided to move out on a part time wage and from then on was screwed.

I have a friend whos got a loan, store cards and credit cards and is keeping up with payments but wants to declare herself bankrupt so she can write off the debts, quit work and go travelling...Obv not possible but how crazy is that? If I was in so much debt I didn't know how to solve Bankruptcy would be the VERY last resort..

 

[Babylicious]

I've been told the defaults on your record stay there for a while I had a bad time with tesco personal finance and they put a default on my credit record because they forgot to send me a dd mandate

Because I was married to an idiot I am also linked to all his debts

 

[poppy160]

Ah, I think your right about the defaults Babylicious, they do stay for a while, but if the debt is repaid the 'Lending Institution' will be more willing to give you credit. Haha about your DH, they do say whats his is yours..

 

[Babylicious]

He's an ex now and I've just cleared his 12 grand debt and he walked away with 13 grand - blooming cheap I say

 

[poppy160]

That is quite rude though, I can't say much, it was my OH who paid my debt off

 

[kellie80]

One of my friends is in so much debt she's talking about going bankrupt, think she's in about £26,000

(

Ha ha, thats about the amount we were in before we went bankrupt! Going bankrupt is far too easy I think and should be made harder. We could of had so much more debt and sold all our Assets (we didn't) and still got away with it. Going 6 years not being allowed a debit or credit card is hard going though. Makes things hard ordering on line or over the phone.

 

[mum-2-one]

Hi
If you call into your bank they can give you an experian enquiry form which you fill in and send of with £1 and they will post you your credit information. You will see from this what if anything is against your name.

Also just to let you know I work in a bank and sometimes if you can prove that the the debt has been cleared they can work around this so it doesn't always mean no for the next few years.