so i have bad credit history.........

[misdee]

and have been working hard for 2-3years to clear all debts etc. how long after last debt is cleared will i have good credit record again?

and yes the bad credit is very very bad. but all being sorted now.

[Gomez]

Can take upto 7 years for a poor payment history to be cleared. Sorry probably not what you want to hear as it is quite a long time.

[misdee]

thought as much. tbh it doesnt bother me that much, am used to dealign with cash only and its helped me get my finances in order. 7years is nothing really. took less than taht to run up debts tho..........

[Gomez]

That is the sh*t bit Misdee, it doesn't take long to mess it up. If the problems were due to a specific problem (i.e. relationship split or job loss) you can add a note onto your accounts explaining the circumstances and a number of reputable lenders will then consider you if your payment history has been good for a period of time afterwards, usually 3 to 5 years from the start of the defaults. HTH

[JanH]

How long does it take to build one from scratch? (Good, not bad.)

[SenoraPostrophe]

No - it's 7 years if you don't pay it off. If you do pay it off, you need to make sure that the people you've paid put a note to that effect on your credit history. You might not have great credit after that, but you should be able to borrow again. (otherwise what is the incentive to paying it?)

Jan - it depends on your circumstances. If you have a decent-ish salary being paid in every month then you get x credit points. If you've been paying your credit card off on time for years then you get x more. If it means anything, my bank seem to increase my credit limit by about £1000 every year I pay on time. Because I'm self-employed the money going into my account is very erratic so I shouldn't imagine I get many points there.

[CarrieG]

My experience was that once you get one lot of credit you can quite easily get more.

Following my dh1's death our business went bust, leaving with HUGE tax, VAT etc bills I couldn't pay. For several years I couldn't get so much as a cheque book, but then dh2 put me on his credit card as second card holder & suddenly I was bombarded with offers of credit.

One piece of advice I was given was that if you can get store cards (often less rigorous credit checks) & are SAINTLY about paying them off in full well before the payment's due, you start to amass positive points quite quickly. Risky if you're as scatty with money as I am!

[misdee]

know its a bit sh*t, was all to do with relationship prolems, illnessess, dd1 being born, and poor money managment as well. ended up selling our flat to clear most of the debts, which was 3yrs ago now. but still have around 7k to clear. and i'm doing very well, should all be cleared in 2.5years time.

[SenoraPostrophe]

In fact, missdee, if you are actively paying and have arrangements with all the creditors, you should be able to get some credit now. Apply for something and see what happens!

[misdee]

i have done, just got a catalogue. but thats it. i dont want to get into more shite lol. i am using it for maternity clothes and a few kids things only.

dh went bankrupt in the time we were apart so his credit is worse than mine, would that be having an affect on my credit rating?

[CarrieG]

If you have same last name & address, then definitely!

[Gomez]

SP - the information is held for a number years whether you pay it off or not. I am referring to the payment history which is held for the term of the loan, pervious 12 months for rolling debts i.e. credit cards/overdrafts etc. So after 12 good (i.e. on time and full amount) payments these debts will look top-notch. But loans/negotiated payment agreements etc will still show periods where payments where not made on time etc. Defaulted agreements are still shown, these will be marked as settled if paid in full or agreement reached but the fact that you needed to go down this path in the first place has a negative impact on credit scores.

Janh - there is no such thing as a 'good credit record' each individual lender has differing criteria - including occupation/age/where you live/previous borrowing and your managment of these borrowings/time at address/time in job/extent and type of current commitments Obviously if you have had borrowings previously and managed these as per agreement then that is all to the good. But if you are only 23, have just moved house, job and already owe £5000 and work as an admin assistant in Hull then your credit score is not going to be great I am afraid.

PS I have worked as an underwriter and a credit risk analyst so have a fair degree of knowledge here.

Misdee - request a copy of your credit file from Experian (costs £1.50) and you will see exactly what your file says.

[misdee]

gomez, i;m scared to request it as i know it will be bad. will wait a few more years and then maybe request it.

i have no idea how dh bankruptcy worked out, but think it ends in 6-12months time. after that will it take him 6-7years as well?

[Gomez]

No bankrupcy is a gem and once your are a fully dischraged bankrupt then it is all clear.

[misdee]

really?

(misdee looks into it for herself..........)

[Gomez]

Also don't be scared to request it - nobody else knows, you will get lots of information explaining it and at least you know where you are at.

[Gomez]

Aye, but it takes about 5 years to become fully discharged and you are well on the way to clearing your record anyway. Also in the future DH can still be asked if ever bankrupt and will of course have to answer yes - for mortgages etc. Can also impact on future jobs. I am an accountant and financial adviser and I would have problems with my professional bodies if had ever been bankrupt.

[misdee]

dont think we'll ever have a mortage again tbh, dh is now disabled, and the council have housed us in a lovely bungalow which is ideal.

same goes for work, he is hoping to be fit and well again one day but its a long way off.

dh has often thought about becoming accoutnant, best let him know that this may work against him still got loads of studying to do anyway.

[spacemonkey]

I am considering bankruptcy as an option at the moment. I don't see how I will ever be able to pay my debts off because I have been off work (sick) for 3 months now, and none of my payment protection insurances cover my illness. Sorry to hijack here but gomez I am sure bankruptcy is never an easy option, would you advise people to avoid it wherever possible?

[misdee]

spacwemoneky do u own your own home? if council tenant then maybe look into it.

dh didnt have any assests to speak of, was in council flat, the only thing they took was his car (which actually died the week they picked it up)

[spacemonkey]

I am a council tenant and have no assets, not even a car any more. Quite a catch eh?!

[Gomez]

spacemonkey - off to feed baby but will come back later and answer. sorry!

[misdee]

you sound like my dh. he now has a car on mobility hire scheme.

[spacemonkey]

I owe roughly £20K. I am having to change career so will be on much lower pay. Have no idea how I will ever pay debts off. Am assuming my creditors will take me to court and the court will order me to pay a certain amount per month that is within my capability to pay. I doubt I will ever apply for a mortgage, so I am not particularly worried about that. However I do not know the full implications of bankruptcy and I feel guilty at the thought that I might be copping out of my responsibilities to pay.

[spacemonkey]

Sorry misdee, I should start a separate thread here really, don't mean to hijack yours!

[swanlake]

have you tried payplan spacemonkey -

there a debt management company - you declare all you debts to them give them a list of all your outgoing - and based on the information you give them - they then contact your creditors and arrange a re-payments scheme - we went from paying £550 a month to £110 now.

there a free debt management company funded by the goverment so every penny you pay to them goes to clearing your debts.

{http://www.payplan.com/\payplan}

HTH