Hello All

[Lexi - Lisa]

Hi everyone, I'm knew to this site and what brought me hear, I was hoping to get some advice or help to try and get my credit score corrected if I can. I hope this is right putting my post here, my apologies if its in the wrong place. My credit score is so poor due to one company called PRA Group .. Just in brief I got an MBNA credit card back in 2004 and in 2012 I did default my payments... however i then was sent to a company called Aktiv Kapital (think there was no one before them) then it has changed to a company called PRA Group.... (I understand from reading posts they have bought my original debt). However my query is if I am making regular payments to them why have they got my payments on my credit score as default payments every month when I'm not to them. I had also defaulted on my barclay card around the same time but like with both credit cards I wrote to them asking to have my interest frozen due to financial hardship and this they did but then sent my debt to a DCA, my barclaycard went to Link Financial who I also make regular payments to and they show on my credit file payments up to date. I wrote to PRA just recently, well emailed asking the same sort of question but still have not heard... Can anyone help me or advise me please... Because of this I cannot get a mortgage with my husband. thank you

[Amethyst]

Re: Hello All

Hi Lisa and welcome

Once you have defaulted on a card/loan in 2012 then it will show on your file as defaulted for 6 years from the date of the original default ( regardless of whether you make installment payments). If you pay off the debt in full now it will be marked as settled ( which will help a little bit in getting a mortgage terms ) but will still show on your file until 2018.

With your Barclaycard, did you actually default before coming to an arrangement with them ? If you did then your file could show as an Arrangement to Pay or up to date - if you defaulted on those payments now then it would stay on your file for a further 6 years.

Ame
xx

[Nibbler]

Re: Hello All

Once defaulted on your credit report, the monthly status codes stay a D or 8 for default each month on your reports. That status history is a record of how you are paying under the original agreement terms, not any informal agreement you may have come to with a collector after that. By it's nature a default is a one way street, as in you have broken the original agreement and the creditor at the point of default felt the relationship between you and it had broken down. You can't undo that default, so status history stays D or 8 prom that point no matter what you are paying.

Usually when passed or sold to a DCA an account is almost always in a situation where a default is appropriate. In fact, the fact of it going to a DCA is one of the ICO 'indicators' of a default in the creditor's guidance of when one should be applied. So there is a case to say that the Barclaycard debt should have been defaulted the same as the other. Have been a spate of them popping up recently which have not been defaulted in this way, and it's up to you whether you think it's worth arguing that a default should have been filed instead.

[Nibbler]

Re: Hello All

With your Barclaycard, did you actually default before coming to an arrangement with them ? If you did then your file could show as an Arrangement to Pay or up to date - if you defaulted on those payments now then it would stay on your file for a further 6 years.

Have been a few passed to DCAs recorded like that recently. Link Financial being mentioned more than once if I recall correctly?

A softening of the stance that going to a DCA is more or less always an automatic default I think, or suspect. Rather case by case on the merits instead.

[Amethyst]

Re: Hello All

Nibbs, If she is applying for a mortgage, would she be better keeping up the payments on the barclaycard debt with Link while it shows as up to date and getting the PRA debt paid up and marked as settled ? Does having a default marked as settled help when applying for mortgage in credit file terms ?

[Nibbler]

Re: Hello All

Probably better keeping them up if any alternative default would have been in 2012, even if there are preceding late payment codes still visible.

A settled default is obviously better than one that is not, but it's up to the lender and their criteria. Some will run screaming at any default, while others more whole of market etc can be more accommodating, especially if they are not too recent.

Most important thing is probably who you apply to and through. So I'm told anyway, as I don't tend to get involved much in practicalities of that.

[Nibbler]

Re: Hello All

As per...

http://www.moneysavingexpert.com/mor...gages-cashback

may be that a broker is best bet

but as says there beware that...

Quick questions

I've had credit problems in the past - do I need to go to a specialist broker?
If you've had credit problems, whether mild or severe (see the Credit Scores guide), and are trying to sort a mortgage, be very wary of going to the 'specialist poor credit' brokers who advertise everywhere.
These often charge very high fees as customers tend to think that's all they can get. There's absolutely no need to go to a specialist though; most normal brokers (including the ones listed above) also deal with what's called the 'sub-prime' market too, and at the same fee rates that they normally charge.

Others may disagree with that.

[nemesis45]

Re: Hello All

Probably better keeping them up if any alternative default would have been in 2012, even if there are preceding late payment codes still visible.

A settled default is obviously better than one that is not, but it's up to the lender and their criteria. Some will run screaming at any default, while others more whole of market etc can be more accommodating, especially if they are not too recent.

Most important thing is probably who you apply to and through. So I'm told anyway, as I don't tend to get involved much in practicalities of that.

The system for mortgage applications changed after the subprime scandal, new financial " questionnaires " were introduced which
have been evolving as times goes on.
To say these documents are intrusive is an understatement!

Defaults showing on CRA file in any status e.g. satisfied or partially satisfied and at any stage within the relevant 6 years are an immediate block.
Questions such as " have you in the past 5 years defaulted on any accounts, has a CCJ awarded against you or received a County Court Claim."

Have you applied for any credit facility which has been declined.

Intrusive questions on spending,. e.g. Gym subscriptions, holidays, smoking /drinking/dining out spends.

A question being asked more prominently because of the likelihood of interest rises is " Will you still be able to afford the repayments if in 6 months + the interest rate rises by x% .

Employment status security is also questioned, long term steady employment does not seem to be regarded as well as it used to be,

Not uncommon for up to five years good+ credit history to be required, applying to both parties in a joint application.

I see this is the " community " in which I have lived and worked for 40 years heart breaking decisions made by lenders even for
a mobile phone account defaulted for £15 4 years ago.
Big deposits needed.

In our area where large military installations have been demolished and redeveloped for housing within days
of the release of properties the streets are a sea of To Let signs.

nem

[Nibbler]

Re: Hello All

Yep, was trying to not be too downbeat, but any default/similar makes things very hard now.