Default on credit rating

[Gwilliams89]

Hello,

I missed payments on my account which resulted in a default on credit rating being issued on my credit rating in 2012 and will remain on file for another year.

i totally admit fault that I missed payments - at the time I was young, niave, had a new born, going through a bad break up and completing a university degree. Things were stressful to say the least.

This default is affecting my life incredibly and causing further stress. I have had to pay higher interest rates for other credit and recently my mortgage application was declined based on this registered default and I am stuck in a private rented property paying rent that is considerably higher than what I would be paying if I were to have a mortgage.

is there anything that can be done to resolve this issue?

Many Thanks,

Gavin

[AnnS]

Hi @Gwilliams89

You have to ask yourself if you owed the money and missed payments.  If the answer is 'yes', it will be a genuine default and will remain in place until the default reaches maturity at 6 years.  

Vodafone have a legal obligation to report against a credit file as a forewarning towards other creditors when there have been outstanding arrears or missed payments.  This was something also agreed to in the Terms and Conditions when the contract was started.

If you have paid any outstanding charges, at least the default should be marked as settled and this is something creditors should take into account.

When the default has been removed in one year's time, Experian will be able to offer advise and support on rebuilding your credit rating.

[BandOfBrothers]

Hi @Gwilliams89

I personally appreciate and understand from my own experience how damaging a default and or marker can be ,and the difficulty in having one removed from a Credit File if not warranted. 

Unfortunatley from what you write the default is warranted so would remain. To add once a debt has been paid its status should show as settled which is much more favourable than showing as Outstanding i.e. Not paid. Maybe double Check your Credit Report status. 

Once the term is up please do check your Credit File to ensure its dropped off. 

Http://www.experian.co.uk offer various ways of obtaining a copy and are there to support , help and advise you. 

Of course all of this does not help with your current situation but it could also be potentially beneficial to check with another mortgage lender as not all are the same on checks. If no joy then maybe the positive way of looking at this is to use the year to accrue extra funds to go towards a deposit or the costs of moving / setting up a new home. 

I wish you well.