credit report

[Hopelessly Hop]

Hi

First post on here!

I am 12 months into a 48 month DMP. I have 12 creditors and have just reviewed my credit report.

5 accounts marked upto date
3 accounts marked as defaulted
2 accounts marked arrangements to pay
2 accounts marked in arrears.

If I were in a position to negotiate F&F on any of the categories does that make them drop off the report rather than stay on for 6 years?

I appreciate I still have three years to run but would like to move house afterwards. This keeps me going so would be good to know.

Thanks

HHx

[helmsman]

Re: credit report

Hi

First post on here!

I am 12 months into a 48 month DMP. I have 12 creditors and have just reviewed my credit report.

5 accounts marked upto date
3 accounts marked as defaulted
2 accounts marked arrangements to pay
2 accounts marked in arrears.

If I were in a position to negotiate F&F on any of the categories does that make them drop off the report rather than stay on for 6 years?

I appreciate I still have three years to run but would like to move house afterwards. This keeps me going so would be good to know.

Thanks

HHx

hi,
All defaults will be on your credit report for 6 years, F/F you could ask for them to be removed but it will be unlikely.
good luck though
helmsman

[Hopelessly Hop]

Re: credit report

Thanks for that. So if I am correct default will drop off in 2016. The problem is I think the AP and arrears ones will be on my record until I finish the DMP and then for 6 years after so for another 9 years. Is that true?

HHx

[helmsman]

Re: credit report

Thanks for that. So if I am correct default will drop off in 2016. The problem is I think the AP and arrears ones will be on my record until I finish the DMP and then for 6 years after so for another 9 years. Is that true?

HHx

hi
The APs will depend whether they default you at a later date but not to sure, there will be others with better knowledge who will answer your questions when they come on line.
helmsman

[MrsD]

Re: credit report

Hi HH

Nice to see you here.

They can only default you once for anything, they should default within 6 months of you going into default ie making reduced payments or no payments, some do some don't. If you are on an arrangement to pay, I think they are entitled to mark your file as that for however long you actually are still in the AP. So theoretically you could be marked AP for years without being defaulted. If however they defaulted you after say 5 years you could argue that you defaulted much earlier and get the date changed. One thing for certain is that its really difficult to get defaults removed, its a big fight which is not always worth the hassle. if you are trying for f&fs, its better to go for those that are with DCAs than with original creditors, I know the Prof had some success with MBNA, but there can be no guarantees. Anything on the report stays for 6 years, whether it be good, bad or indifferent. unless you live in Scotland of course, it's five years here. Your report doesn't look uptodate but it does take the CRAs a while to update fully, but essentially that should make no difference to the actual dates on there, just kind of gives you a period of "grace" at the beginning!!! We have a very good section of F&Fs here have a wee look.
Good luck, see that the Prof has inspired you all!!!

[Hopelessly Hop]

Re: credit report

Hi HH

Nice to see you here.

They can only default you once for anything, they should default within 6 months of you going into default ie making reduced payments or no payments, some do some don't. If you are on an arrangement to pay, I think they are entitled to mark your file as that for however long you actually are still in the AP. So theoretically you could be marked AP for years without being defaulted. If however they defaulted you after say 5 years you could argue that you defaulted much earlier and get the date changed. One thing for certain is that its really difficult to get defaults removed, its a big fight which is not always worth the hassle. if you are trying for f&fs, its better to go for those that are with DCAs than with original creditors, I know the Prof had some success with MBNA, but there can be no guarantees. Anything on the report stays for 6 years, whether it be good, bad or indifferent. unless you live in Scotland of course, it's five years here. Your report doesn't look uptodate but it does take the CRAs a while to update fully, but essentially that should make no difference to the actual dates on there, just kind of gives you a period of "grace" at the beginning!!! We have a very good section of F&Fs here have a wee look.
Good luck, see that the Prof has inspired you all!!!

Ahhhhhhh lost the post, grrrrrrrr!

Morning Dopey.

Good to see you. Been meaning to check the site out for a while. Here I am and see you've been promoted to Prefect already!

Life's a bit grim on DMP but am getting there. In some ways I can't believe I'm 25% of the way through. Numbers going up and down keep me motivated! Boards have been a life saver and I try to make sure I give support back too.

From what I have gleamed re credit report the 'arrangement to pay' and 'arrears' are even worse than the dreaded defaults as they hang around for a lot longer! I'd like to think I don't want credit again but I would like to move house and unless I wait until retirement I will need a mortgage so goodness knows what my chances are! Plenty of time to research that long term goal I guess.

Am adapting to frugal living, planning to the last penny on spreadsheets. Petrols the real killer. Unable to keep an emergency fund in reserve. Am hoping that once car service and MOT out the way I can keep an emergency fund as that and then start aiming for F&Fs. Need to research when's best time to go for it etc. Would really love to bring DMP in 4 months ahead of schedule so I can finish 2013 off and have a fresh start in 2014.

Anyway will be back to see how you are getting on!

Have a good day everyone.

HHx

[MrsD]

Re: credit report

Morning

I think the best plan is to try to get some F&Fs to get the report clear as quickly as possible. As far as I can see the older the defaults and APs are the less damage they do to your report. So if you have an arrangement to pay that has been running for say 3 years and you only have 6 months to go, that looks better to potential creditors than a brand new default. They all score differently so its difficult to guess but you've come this far without credit so you can go on, just don't leave yourself short on living expenses to pay the DMP. and you could also read up on UE, its working for a lot of peeps on here, me included but it isn't something to be entered into lightly, needs research.
Keep in touch and take care

Dopeyxx

[Never-In-Doubt]

Re: credit report

Hi & Welcome,

Ok first things first, these AP markers are worse than defaults (as dopey says) because they can, in essence, hang around for many years; easiest way to describe it is the history they create remains for 6 years after the settlement period. So let's say you went on AP on 1st Jan 2005 and that arrangement ended in Jan 2011 (ie you paid it all off); then your credit file would remain derogatory until Feb 2017 so paying it would cost you 12 years CRA data!!

You'll often see me advise people not to pay if it'll take longer than the natural default progression; ie why waste 12 years when if you stop paying, you're clear after 6 years only...

So, in your case based on what your OP reads, you're gonna have derogatory data on your file for years to come, unfortunately. You also mention you want to make F&F to clear the credit file; why? Making F&F won't change anything - certainly not your credit file. After McGuffick (v RBS) lenders are extremely reluctant to offer deals when it comes to repayment v default removal. They simply refuse and say the data-feed is an accurate event of account activity and therefore the data will stay.

If you want to speed the whole process up with better results; you may be better considering cessation of ALL payments, then wait for the DCA's to hassle you and default you, then make 10-20% offers to them and you'll get somewhere. Point is, people don't take deals on a debt that's being repaid!

Any queries about the above or default process; feel free to give us a shout....

[Hopelessly Hop]

Re: credit report

Thanks for the warm welcome helpful advice.

The penny has only just dropped re the impact on my credit score and that it's barely recoverable before I'd like to reduce job committments or retire. I'm mid 40's now. Am in no way criticising peeps who choose to take UE route but it seems crazy that the worse you are seen to behave the more reward you get! I know what you are both saying makes sense but I'm not good at negotiating and not sure I have the bottle to go down that route. I've just about stopped lying in bed fretting that someone may call or take me to court. Sorry to sound negative!

HHx

[Never-In-Doubt]

Re: credit report

I'm not suggesting you come down the UE route, but are you aware you could be paying this for 3 more years and be in a worse state than had you not bothered? I think you've gathered that; with your last comment - yes, you're right. If you stop paying then it's usually all over in 6 years. Pay, and it could be double that.

As for mortgage, you'll not get much joy with any AP markers hanging around. Sorry, but that's just the way it is.

[Hopelessly Hop]

Re: credit report

I know, depressing thought but guess that's the way it is! Appreciate your frankness, makes it clear to understand which is important when you have so many ifs and buts whirling around the brain.

At least if no extra mortgage then less interest to pay long term. I'm with NR on the dreaded together deal, not the best one in the world but at least allows overpayment so planning to invest the DMP amount into it in three years time. Then again I could even end up with the man of my dreams and end up not wanting to leave the bedroom so would have no need for a garden and conservatory! OK, OK, I know, stick with the programme and get through the next three years!

I've got 5 preditors still charging me interest, any tips on how I may motivate them to stop? Stopping paying not an option while I want to keep on DMP. Have sent the usual please reconsider letters.

I met Dopey on tother site, just caught up with her diary on here, had to run to the loo a few times, awesome, you guys rock. Mind you the story of the Resolvecall chap had me howling.

Keep up the great work

HHx

[Never-In-Doubt]

Re: credit report

Once defaulted, charges & the like stop. Thus it's all linked....

Stop paying -> Get defaulted -> Wait till sold to DCA -> do deal to repay in installments or as a 10-20% lump sum -> 6yrs later = clean credit file

You're doing the long winded version, sorry to say.

Hope the above makes some sense - it is the easiest way to deal with things, by cessation of payments; albeit not your desired choice.

[Hopelessly Hop]

Re: credit report

That does make sense Niddy. I need to have a good think about it all.

Just wondering if I should test the water whilst on DMP and check out how many are enforceable? Would this have any negative impact on the DMP in your opinion?

HHx

[Never-In-Doubt]

Re: credit report

You cannot partake in a dmp whilst you venture down UE as a dmp means you split payments equally, they won't allow cessation to certain accounts. You would cancel the dmp, send a cca request and see what they send back. If you wait even 6 months, you'll get defaulted and then you can haggle with dca's OR start a new dmp (they are free remember)..

You've nothing to lose, it's win-win for you. AP's are awful.....

[Never-In-Doubt]

Re: credit report

Point is, if you done the above then no matter what, you KNOW by May 2017 that your credit file will be clear and you'll be fine to apply for bank/cards/mortgage.

Alternative means it could be 2020 before you're free.....

The default goes after 6 years whether paid or not.