credit file damage - When will the impact lessen??

[STXbean]

Hi.

Last year I lost my dad and spiralled into a really bad place. As a result I totally lost all organisation of my finances and ended up missing loads of payments. This understandably hammered my credit file/score. I ended up with lots of late/missed payments etc.

I finally got help about 6 months ago and have been in a better place since. All of my accounts are now up to date, however I am conscious that the damage to my credit score will be there for 6 years.

Will the impact of this lessen over time, or is it just a case of waiting until 6 years is up? we have talked about moving house when our youngest leaves school in 2 years. This would need a new mortgage. Am I likely to be ok if I have 2.5 years of regular on time payments, or is it hopeless before the 6 years has passed?

No, it's like a CCJ or a disciplinary on your work record, it's there until it ages out. It'll actually be longer than 6 years.

6 years until it drops off your credit record then you have to rebuild your score until its in the good banding again. Which means taking and repaying credit, which takes time.

My sister had to do it after her ex took out loans in her name. Which he couldn't pay back because of his gambling problem. Took her a good year after they dropped off her file to even get a mobile phone contract again.

Yeah this.

It’s 6+ really to get rid and then rebuild.

There are lenders who will consider those with bad credit who may still take you on but you’ll be paying huge interest rates for the privilege.

I don't think that's entirely true. A CCJ will stay on your file for 6 years. But missed payments which did not result in a CCJ will clear quicker. You have got back to being able to manage your credit properly so just keep doing what you are doing, being reliable, never missing a payment, not maxxing out your cards and it will slowly improve.

There is incorrect information in every post so far 🤦🏻‍♀️

No, it's like a CCJ or a disciplinary on your work record, it's there until it ages out. It'll actually be longer than 6 years. 6 years until it drops off your credit record then you have to rebuild your score until its in the good banding again
Firstly it's nowhere near as big an impact as a CCJ. More importantly NO it won't take 'longer than 6 years'. There is no 'rebuild time' necessary as when a late payment drops off a credit file it's gone instantly. When the op's most recent late payment drops off her credit file - exactly 6 years after it occurred - assuming all payments since have been on time, she'll have a perfect credit record of up to date payments. As perfect as someone who's never been late on a payment, ever. No 'rebuild' necessary.

It’s 6+ really to get rid and then rebuild
No. See above.

A CCJ will stay on your file for 6 years. But missed payments which did not result in a CCJ will clear quicker
No, they will not. A late payment will drop off your credit file 6 years after it occurred. The exact same length of time as a CCJ, default or, indeed, payments that were made on time will drop off your record.

There's no exact timescale or science to it op. But broadly, yes, the impact of late payments, defaults or CCJs does lessen over time. A late payment last month will be more concerning to lenders than one three years ago.

I do some underwriting and missed payments aswell as CCJ does impact your credit rating for 6 years.

When you apply for credit, creditors can see all your information for the last 6 years. There are creditors out there who will lend to people with adverse credit but the APR is usually extremely high so if you did manage to secure one of those, you would be best paying the balance in full each month.

Underwriting an application whereby someone has adverse credit history, we have to do a risk assessment. Although I don't work in the mortgage field the risk for a mortgage would be lower than say a credit card because even though the lending is much higher, there is the value of the property that can be sold if payments are missed.