CCJ Advice. Credit history / F&F help required

[Wiggle61]

I’m not sure if this is the correct sub-forum, but feel free to move if there is a more appropriate place. Here goes:

I had a credit card with Halifax, went down the DMP route and received defaults etc in Aug 2009. Halfiax solf to Hillesden, who applied a CCJ in Feb 2011, which I didn’t challenge. All of the other defaults drop off next month so I need to address this CCJ and future proof my credit history as best I can so that it doesn’t reappear or leave any lasting legacy post Feb 2017 (6 years after the CCJ).

I have been paying around £40 a month, every month, which is the amount agreed in the CCJ but the balance is currently around £2.5K and clearly won’t be paid by 2017. Shall I make a full and final offer to get this debt marked as settled now? Or will they simply reject? Is there any way that this debt will continue to show on my history post Feb 2017 if the CCJ is spent (after 6 years) and there is still a balance?

I am happy to pay them the balance now if it means there is no way this can bite me on the ass in 2017. Primary objective is cleaning up history to remortgage.

Any advice greatly appreciated.

[Pixie]

Re: CCJ Advice. Credit history / F&F help required

As far as I'm aware a CCJ drops off your credit file after six years.

Have you tried rebuilding your credit score? Even if you don't want/need a credit card it may be worth getting one as lenders don't like "blank" credit histories.

To best utilise the CRA data feeds and get an extremely high internal score you must pay more than the minimum. To explain, your credit file is usually updated after your monthly payment date so it reflects the payment made that month. If you have a £2k limit and spend a few hundred each month but pay it off in full then each time the card company reports the feed to the CRA it suggests you have a £2k limit with a £0 balance (as you've paid in full) and had the same the month before, and before that etc etc - so in theory it suggests the account is dormant / unused.

So to combat this you set a DD up to pay the minimum each month, then look at your credit file and check the 'date last updated' against that particular account and then literally pay the balance after that date (via online banking / however you fancy really). This will then update on the following monthly feed as settled and as paying the minimum plus extra, it basically boosts your score with the CRA's as it suggests you pay the minimum on time then settle the rest of the balance at a later date with a second and additional payment. Your credit file will show a small carry-forward balance which, in the account history, will record that it was paid a few days after statement due date - so the searching company will know you're a good risk as you manage your accounts extremely well.

That's the only way to boost your internal score with a lender and/or credit agencies.....

[Undercover Elsa]

Re: CCJ Advice. Credit history / F&F help required

Hi Wiggle61,
Was it defaulted before you started your DMP? What is showing on your credit file, a Default or Arrangement to Pay?
As Pixie said, the CCJ will drop off after 6 years regardless, as would a default. An arrangement to pay however stays on the file for 6 years after the last payment.
A most unfair system which punishes those who enter DMP's I'm afraid.
This is why it's better to allow an account to be defaulted and terminated prior to entering any payment arrangement...but they don't tell you that!

Elsa x

[Wiggle61]

Re: CCJ Advice. Credit history / F&F help required

Hi Wiggle61,
Was it defaulted before you started your DMP? What is showing on your credit file, a Default or Arrangement to Pay?
As Pixie said, the CCJ will drop off after 6 years regardless, as would a default. An arrangement to pay however stays on the file for 6 years after the last payment.
A most unfair system which punishes those who enter DMP's I'm afraid.
This is why it's better to allow an account to be defaulted and terminated prior to entering any payment arrangement...but they don't tell you that!

Elsa x

Thanks both. Defaults were applied, no ATP's. Credit history is pretty good other than this now, I have a £3K limit with Capital One and pay that in full every month. I am just worried that if the CCJ is not fully paid up and settled that it will somehow reappear and blow any chance of remortgaging / new house.

[Never-In-Doubt]

Re: CCJ Advice. Credit history / F&F help required

If the CCJ is +6 years old then it pretty much disappears. However it *may* still appear as a public record if they do a trust online search but usually after 6 years it vanishes.

[Wiggle61]

Re: CCJ Advice. Credit history / F&F help required

If the CCJ is +6 years old then it pretty much disappears. However it *may* still appear as a public record if they do a trust online search but usually after 6 years it vanishes.

Thanks. So I may as well just continue paying the £40 per month agreed when the CCJ was applied? No real reason to settle it in full now

[Undercover Elsa]

Re: CCJ Advice. Credit history / F&F help required

No reason at all, unless they suddenly decided to push up the payments or apply for a Charging Order. If not I'd just keep your head down and keep paying.

[PlanB]

Re: CCJ Advice. Credit history / F&F help required

Hillesden, who applied a CCJ in Feb 2011, which I didn’t challenge. All of the other defaults drop off next month so I need to address this CCJ and future proof my credit history as best I can so that it doesn’t reappear or leave any lasting legacy post Feb 2017 (6 years after the CCJ).

. . . I am happy to pay them the balance now if it means there is no way this can bite me on the ass in 2017. Primary objective is cleaning up history to remortage

A CCJ marked "satisfied" is better than a CCJ that isn't when it comes to credit scoring for a mortgage. Especially if all your defaults drop off next month so this would be your only remaining blip.

Do you need/want to remortgage soon?

Plan B x

[Pixie]

Re: CCJ Advice. Credit history / F&F help required

Thanks both. Defaults were applied, no ATP's. Credit history is pretty good other than this now, I have a £3K limit with Capital One and pay that in full every month. I am just worried that if the CCJ is not fully paid up and settled that it will somehow reappear and blow any chance of remortgaging / new house.

Paying in full (ie in one payment) every month may not be best for your credit rating...see my post #2