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Bad credit blackhole - How can I improve it?

Last post Fri, Dec 12 2008, 9:18 PM by conmankiller. 1 replies.
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  •  Fri, Dec 12 2008, 9:18 PM

    Re: Bad credit blackhole - How can I improve it?

    Hi -- The first recommendation is to stop applying for more credit, every time you apply that has a negative undesireable effect on the recovery of your credit file, instead concentrate on settling the second CCJ.

    You have done really well so far by settling your liabilities in such a relatively short period of time, if you can get that second CCJ from the wholesaler marked as settled you will be well on the road to recovery, but your record still needs time for the seriousness of the CCJ's to be regarded of lesser importance when re-applying for future credit. The CCJ's stay on your credit record for a statutory Six year period unless you have valid grounds to apply to the court to have them "set aside," which it would appear that you don't have.

    You could write to ex-creditors who defaulted you asking for their written permission to remove the old defaults, they need to provide a written agreement notice that you can forward copies onto the relevant credit reference agencies asking for the early removal of the old settled defaults. This action will substantially repair your credit file, then leave it for a further suggested period of 12 months after this before re-applying for a higher rate (easier to obtain) credit card that you always pay off in full every month. That will repair your credit history even further, also make sure you are registered on your local authorities electoral role, it all helps.

    It's a catch 22 situation I'm afraid, you need a decent credit history to have a good chance of a successful application in the first place, but you also need a reasonable credit history to acquire that first foot in the door ....your other best friend in this situation is time.

    The article below will also help explain in far greater detail, than I could reasonably post on here.

    http://www.insolvencyhelpline.co.uk/credit-repair/index.php

    • Post Points: 35
  •  Fri, Dec 12 2008, 7:32 PM

    Bad credit blackhole - How can I improve it?

    Hi,

    I've been going about trying to sort out my bad credit situation for a little while now. Im 20 now and first got credit when I was 18. I had 2 small credit cards (the high interest rate ones from capital one and barclaycard), a vodafone account, and a great universal account.

    I run my own business as a self employed electrician and last year business wasnt going so well so I let my payments mount up and defaulted on all of my credit accounts. I also picked up a CCJ from a wholesaler and a storage company. In the last 6 months I've paid off and closed all of my accounts and cleaered my CCJ from the storage company but am still paying off my CCJ from my wholesaler account.

    I've got a contract mobile phone with O2 which I havnt missed a payment on or made a late payment. The problem is I'm trying my hardest to improve my credit rating but am strugling to find anyone that will lend to me. I figure the only way to improve my credit rating other than pay off this final CCJ is to get credit and make sure payments are made on time every time. Thing is I cant even get high interest rate cards or store accounts. I have only applied for 2 different accounts in the last month and have been rejected for both. Prior to that there are no searches on my account for 6 months to a year. Is there anything I can do to improve my situation?

    Thanks

    • Post Points: 20