AIBU thinking I can change my credit around wuickly?

[TillyMcGilly]

My credit is shockingly bad - recent defaults, CCJs, unpaid accounts etc. i have no over draft or current credit card/loan. Only current thing on my report that I am paying is gas/Elec, water, mobile phone. Everything else is in default eg payday loans, credit card? Catalogue, loans. I couldn’t even open the most basic of credit stuff right now, that’s how bad my credit is. However, I want to start turning it around so that I can own a house one day. I’ve set up repayments on all my outstanding accounts.

Has anyone being in my position and how long did it take you to turn it around and get a mortgage ? Thanks

Defaults stay on your credit file for 6 years from the date of default. You can change things but no it won't be quick especially with ccjs on there. You won't get credit til they've gone and certainly not a mortgage

You can turn it around but unfortunately it won't be a quick fix.

It's also important to take into account why you've defaulted on so many payments, is it a lack of income or overspending? Addressing the root cause will help you to turn things around.

Things will stay on your file for 6 years but most lenders look at the last 3 years history. So you would need to get everything paid off and once its done its basically 3 years from then. There are lenders that will look at bad credit within the last 3 years but rates will be higher and if you are looking at high loan to value mortgages then you might struggle

You have at least 6 years, basically. We're three years in and have been able to get some basic credit again recently, which we're using extremely sensibly in order to rebuild lenders' confidence in us (we previously defaulted due to a sudden change in financial circumstances rather than just not bothering to pay). It's a long, hard slog.

You need to focus on getting it all paid off, in full, every penny you borrowed.

I got myself into a right muddle when I was 18/19 and managed to buy my home at 29. There isn't a quick fix but once you surpass the 6 years if you've kept on top of all repayments your credit score will improve almost immediately.

It will take you 6 years.

But that gives you time to sort your debts, learn how to properly budget, save up a deposit and fees etc.

Buying a house is expensive, owning a house is expensive. You need Rick-solid budgeting skills.

Go to moneysavingexpert and do their budget planner and get on their debt-free boards.

As others have said you need to wait out the six years.

I was in defaults, payment plans, a real mess.

I got myself a high interest ‘starter’ credit card and put my weekly shop on it, paid it in full every month. That alongside paying off all my debts and the sensibly using the credit I did have built up my score.

I’ve now had a perfect credit score for years (and a near £400k mortgage to show for it).

I also didn't pay everything off BTW. I spoke to a debt advisor who advised that as it has been so long for some of the debts I was better not contacting them as it would be written off. It was but not the most advisable route and as you've set up payments now not possible anyway.

Speak to a debt Centre, depending on the level of debt they may advise a repayment plan where a % is written off.

I was in a similar position in that I racked up credit card bills and got into defaults - I was so depressed (vicious circle) however I had eventually had enough of feeling miserable and guilty. I contacted a debt management charity who helped me liaise with all of my creditors and set up repayment plans. They also negotiated with the creditors who agreed not to charge any interest on my accounts.

I can highly recommend StepChange as a debt management company. They do not take any money from you as they are a charity. I have been with them for the last 5 and half years and will be debt free in July this year. At one point I never thought I'd get to this point but I'm so excited for July.

Good luck.