Possibly busted my credit rating?

Settled defaults > unsettled defaults all the time.

That's the issue with some peoples debt. The company quite often makes a settlement off and say settle your 3k of arrears for 2k. Looks tempting but they point out that it won't get marked as been settled on your credit history and may have a affect on your rating. Basically it will just show up that you never paid the debt. I think this is wrong. If a lender is prepared to accept a lesser amount to clear your debt it should be marked as such on your credit file.
Both ways will stay on your file for 6 years however settled defaults will always be looked upon better than unsettled defaults.
 
If one is refused a contract from CPW and then applies with let's say Orange don't they ask you if you've ever been declined credit?

Certainly when buying household insurance I'm always asked if I've been declined the offer of insurance in the past, the same with vehicle insurance.

That would worry me.
 
I've never took out a contract at a high street phone shop for 10 years now. Much easier and far better deals to be found online. Plus you can spend as much time as you like to find and work out what is the best deal for your needs.

Shops like CPW and P4U are only interested in lying to you and trying to sell you whatever deal earns them the most commission that week. People are getting wise to this, and along with what seems like lifetime contract lengths, no wonder their shops are empty everytime I go past.
 
Greebo said:
Settled defaults > unsettled defaults all the time.

That's the issue with some peoples debt. The company quite often makes a settlement off and say settle your 3k of arrears for 2k. Looks tempting but they point out that it won't get marked as been settled on your credit history and may have a affect on your rating. Basically it will just show up that you never paid the debt. I think this is wrong. If a lender is prepared to accept a lesser amount to clear your debt it should be marked as such on your credit file.
Both ways will stay on your file for 6 years however settled defaults will always be looked upon better than unsettled defaults.
Click to expand...

They told me that they would accept a £700 payment to clear my debt and my file would be marked as partially settled. I'm still fighting to get it removed as I don't believe the company were sympathetic enough to my plight at the time. I've also been told I can put a notice of correction on, but that doesn't really make much difference.
 
robfosters said:
I now can't even get a credit building card. I am trying my best to get the default removed, but they only say that they will mark it as settled if I pay it all off.
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so "trying my best to get it removed" doesn't actually include paying it?
 
If you guys want to build strong credit records you need to take out credit cards and show a track record of paying those on time. Just taking out the odd phone contract won't leave you with a strong credit record.
 
:
Tefal said:
so "trying my best to get it removed" doesn't actually include paying it?
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Not at all Tefal, I've offered to pay it off if the default is removed. I will pay it off anyway, I pay my debts, just felt a little aggrieved that I was racking up weeks of interest charges while laying in hospital.

But that's beside the point, the company (Vanquis) in general were very unhelpful during a difficult time, so I am willing to pay it all off if the default is removed, but I don't want to give them a thousand pounds in one hit when I've got to suffer or the next 4+ years. They didn't assist me properly, so I am willing to pay if the defaults removed. If they don't agree to that, I will go to the financial ombudsman and see what they make of it all.
 
grimm said:
If you guys want to build strong credit records you need to take out credit cards and show a track record of paying those on time. Just taking out the odd phone contract won't leave you with a strong credit record.
Click to expand...

Agree. I have cards with Luma, Aqua, and a Halifax Classic card which I've had for over 10 years. I use them for small purchases and pay off. Sweet sweet credit rating building. :)
 
robfosters said:
Great if you can actually get one of them. I can't.
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If you can't get Luma or Aqua then you must have some recent debts that you are currently defaulting on. Their market is aimed at people with poor credit ratings.

I've had the Halifax Classic since I was in my teens with no credit history at the time apart from an overdraft with a different bank and a phone contract.
 
Belly said:
If one is refused a contract from CPW and then applies with let's say Orange don't they ask you if you've ever been declined credit?

Certainly when buying household insurance I'm always asked if I've been declined the offer of insurance in the past, the same with vehicle insurance.

That would worry me.
Click to expand...

You have misunderstood the insurance question.

What they are asking is if an insurer has cancelled your insurance after you have bought it. An insurer will only really do this if you have done something fradulent or are refusing to help them validate facts. Sometimes you want to insure something they don't cover midway through a policy, but that would be you cancelling the insurance and so that doesn't count.

This is different to someone refusing to insure you. Most people will have insurers that won't insure you for various reasons. Just go on confused.com and see how many insurers don't provide a quote at the bottom.
 
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LeeUK said:
If you can't get Luma or Aqua then you must have some recent debts that you are currently defaulting on. Their market is aimed at people with poor credit ratings.

I've had the Halifax Classic since I was in my teens with no credit history at the time apart from an overdraft with a different bank and a phone contract.
Click to expand...

My previous posts state my problem.
 
robfosters said:
I'm sure it still does. I am on the electoral roll, same place for 11 years, got totally clean bank accounts, a clean record with mobile phone contracts, Virgin TV/Internet and catalogues, my entire debt amounts to £250. Problem being, I have one default where I let a credit card go after I lost control of my finances a bit following a stroke I suffered.

I now can't even get a credit building card. I am trying my best to get the default removed, but they only say that they will mark it as settled if I pay it all off. I still think a settled default is as bad as an unsettled one. The default doesn't come off until 2019. That's a long time.
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Your credit history is supposed to be an accurate report of your financial dealings, if you missed multiple payments then you did default and they have recorded it as such, I understand this was out of your control in that you were in hospital, why didn't you have a direct debit or anything set up though?
 
Broken Hope said:
Your credit history is supposed to be an accurate report of your financial dealings, if you missed multiple payments then you did default and they have recorded it as such, I understand this was out of your control in that you were in hospital, why didn't you have a direct debit or anything set up though?
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No. I was setup to pay online when the bill came in.they didn't even tell me I was going to default.
 
muon said:
You have misunderstood the insurance question.

What they are asking is if an insurer has cancelled your insurance after you have bought it. An insurer will only really do this if you have done something fraudulent or are refusing to help them validate facts. Sometimes you want to insure something they don't cover midway through a policy, but that would be you cancelling the insurance and so that doesn't count.

This is different to someone refusing to insure you. Most people will have insurers that won't insure you for various reasons. Just go on confused.com and see how many insurers don't provide a quote at the bottom.
Click to expand...

Thanx for putting me right on this.

I've had a credit card since '78 with the original 5K limit, I pay the balance by DD each month. A few years ago I applied for a cash back credit card from a different supplier I gave them my financial details: net annual income 82K+, home owner, no mortgage, no HP, loans etc. They sent me a card with 1K limit when I spoke to them they said they would NOT increase the limit within the 1st year as I had no credit history. After 6 weeks I cancelled the card.

The wife has the latest iphone from work and I know she will want something similar when she retires ( I want that one!) and I've been concerned that we might NOT get a contract due to NOT having a credit history and I've considered just buying her the phone and taking out a sim only contract. I incorrectly thought that if I was turned down by CPW that would act as a declined credit against myself.

Yes, thanx for putting me right on this one.
 
robfosters said:
They told me that they would accept a £700 payment to clear my debt and my file would be marked as partially settled. I'm still fighting to get it removed as I don't believe the company were sympathetic enough to my plight at the time. I've also been told I can put a notice of correction on, but that doesn't really make much difference.
Click to expand...

Always ensure you get your lender to agree to marking the debt as paid in full if accepting a reduced settlement offer. Most will, some wont.

There are some templates on moneysupermarket to helps you.
 
Greebo said:
Always ensure you get your lender to agree to marking the debt as paid in full if accepting a reduced settlement offer. Most will, some wont.

There are some templates on moneysupermarket to helps you.
Click to expand...

Even then though, the record of you not paying for x months will remain on record. It will just say you settled it in full in month x+1.

That will still adversely affect a credit score, especially if it is recent.
 
muon said:
Even then though, the record of you not paying for x months will remain on record. It will just say you settled it in full in month x+1.

That will still adversely affect a credit score, especially if it is recent.
Click to expand...

It will. It will stay on file for 6 years either way.

However better to have

"Credit went into default (user added on note about why
Debt paid off in full and settled"

Than

"Credit went into default and user has never paid the loan back"
 
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