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How do we get credit report back on track after messing it up?

3 replies

yellowflowers · 07/04/2012 14:08

Can anyone advise me on getting our credit rating back to an acceptable level?

Here is all the info:

My husband and I have been married four years. He earns more than me but I had a deposit for our house and because he was on a temporary contract at the time and I am self employed and it was at the time of crazy mortgages, I was able to self certify and the mortgage is entirely in my name though our account is joint and he contributes more than me, so although I provided the deposit he has paid more than me subsequently, even though the house is in my name only. We have never missed a mortgage payment and our mortgage is about 75% of the house value.

My credit rating is fine.

My husband's credit rating is awful. He has three outstanding debts which have just come to light (to me at least - he had head in sand). Of these three, one is now completely paid, one we paid a settlement fee in full and one we are paying off on a payment plan. However before these were sorted, unknown to me my husband received several final warnings and reminders and threats of CCJs, though luckily I think we have caught it before it gets to this.

He has no credit cards. I have credit card debt but it is being paid off gradually and will be paid of in full in about three years I think. We also have overdrafts which again should be ok in two to three years. So oter than mortgage by end of 2015 we hope to be debt free.

So in terms of credit rating, how do we now correct the damage my husband has done and get it to a stage where in 2016/17 we might be able to get a new mortgage and move house?

Given it is all my husband's fault - he cannot pretend he didn't know about the outstanding debts as he received plenty of letters about them - what does he have to do to make it right? What letters should he write and to whom? If he writes to the compnoes he owed money to what should he ask them to do regarding credit rating?

Obv there are now trust issues me and him have to work out. But right now it's the financial side I need to sort.

Thank you

OP posts:
CogitoErgoSometimes · 07/04/2012 16:26

A lot of it is down to time & getting out of debt and into credit. The further away he gets from the debts & defaults and the more he can prove he is a good risk, the better the rating will get. If the debts and defaults are genuine he can't get his credit rating reassessed - that's only if they've made a mistake. Has he spoken to CAB, CCCS or National Debtline?

FrillyMilly · 07/04/2012 16:36

Time is a great healer! DH got in to some debt in 2006 and it resulted in one account in default and one CCJ. Both were paid up in full that year. We had slowly but surely been clearing the debt. He now hasa good credit rating as the default and CCJ disappeared off his record last year. We have found regularly using and paying off a credit card has helped, keeping up to date with all payments and having the same address for 8 years had all helped. I think money saving expert site has information on repairing your credit rating but as at as I know companies will only changed the account status to settled but not remove from your file.

yellowflowers · 09/04/2012 11:58

Thank you both. Any other advice?

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