www.iva.co.uk

Please can you answer the following question relating to credit repair. If you have had late payments, but you have paid or are able to pay the balance in full, can you have those entries removed from your file? Your guide deals with CCJ's of which I haven't got any, but I do have a history of late payments. However, whilst being late I have always satisfied the balance in full. I will shortly be receiving enough to clear of any outstanding balances and obviously want my credit rating to be the best it can be.

I hit financial trouble in 2005 and had to take on a big mortgage at a very disadvantageous interest rate. Fair enough, my own fault. However, I am struggling witht he repayments as it stands and as it was a discounted mortgage it will go up by £100 a month in November. If I can have late payments removed I can improve my credit rating and remortgage at a better rate, thus lessening the impact. If I can't I have 6 months in which to work out how to live of less than 240 quid a month for food, clothes, petrol.

Hi

If you have just had some late payments on your accounts, then this should not be too serious in terms of getting future credit (particularly a mortgage). There is no way that I know that you can remove records of late payments from your file other than time. My understanding is that a simple late payment will "fall off" your credit file after 6 months. Even if you pay the balances in full, i believe the records of the late payments remain. However, you should still be able to get a reasonable mortgage deal by speaking to adverse mortgage broker.

If you have actually received Default Notices, this is a different thing. WEhether you pay the balances in full or not, these will remain on your credit file for 6 years. However, again, if you speak to a mortgage broker, they may still be able to get a better deal for you than the one you currently have

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

Hello

I am not an expert on credit repair as such but I do not believe that paying the balances off in full will motivate the banks to withdraw the late payment notices. However, I don't think that these late payment notices have a massive adverse effect on your credit and are much less serious than defaults and CCJs. Furthermore, you satisfying the balances in full will have a positive impact on your credit file.

Shop around and talk to a mortgage broker to see if you can get a better rate. Be mindful though that mortgages often can have lengthy tie in periods and you will need to check that there is no financial penalty if you move your mortgage. If you can't change the mortgage to another lender talk to your current lender and see if it would be possible to extend the term of your mortgage to free up some more money for you to live on in the month.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Thank you very much for that. I have requested my credit file from the dreaded agencies and will see what it tells me.

Your welcome. You can always show a copy of your credit file to prospective mortgage brokers to get an idea of what kind of deal you will able to get.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi gimmewine

I think James might be being a shade optimistic there.

The way Credit Reference Agencies record payment history is something like this

000000110000001

This says you had two 1-month late payments 7&8 months ago and were late again in the most recent month.

This information stays on your credit file for the duration of the agreement and for six years afterwards. It cannot be removed unless you can get the lender to agree it is wrong. Therefore the best way to 'repair' your file is to keep your payments up to date and put your 'lates' as far behind you as possible. Lenders will then view it as a temporary 'blip' which you got over.

However you may be worrying unnecessarily. Lenders don't often seem to record 'lates' straight away and sometimes not at all. Your best bet is to check your own records yourself from Equifax and Experian. Don't be lured in by expensive monthly payments, both are statutorily obliged to send you your record on payment of £2. The details should be on their websites but I'm sure they don't make them easy to find !

Even so as the guys say above, the effect of a few lates is likely to be minimal even if you can't actually get rid of them.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

Payment profiles can not be removed or ammended unless incorrect.

Depending on the lender - late payments have an impact for upto 12 months. From a scorecard perspective (CreditScore) they are normally irrelevant after 12 months (depending on the type of credit) For example a well paid telephone account will do little for your score whereas a well paid Hire Purchase account will have an impact.

Things that generally help if you are looking to borrow is to make sure you make payments on time or don't let matters get worse. Also reduce the balances to show you are not over indebted - For example Abbey / Santander scorecard wants to see you using no more than 85% of your available credit.

Lenders look at the worse status in 12 so for example if you have been 3 behind in the past 12 months that is the status they will when underwriting.

There are deals available on subprime mortgages but will depend on what your expectations are.

Thanks for the replies. I have no credit cards or store cards, cut them all up when I took on the big mortgage. I know there is something on my records because I have been claiming bank charges back and wanted to set up another bank account just in case my current bank closed my account. The request was refused.

In the last 12 months I have paid two mobile phone bills late (one month a piece) have been catching up on big arrears on gas/elec but the company was being kept informed and have an ongoing dispute with my old internet provider who failed to cancel the service when requested, so I am refusing to pay those bills. It could be any of those, my credit history will tell me.

I think if lenders look at the worse status in 12, the best thing for me to do is live with the increased payments for 6 months, keep back enough out of the bank charges to cover it, then apply when I am certain I have had nothing for 12 months. By then, both my daughters will be in education locally and I am able to walk to work, so should push come to shove, the car can go.

It used to be just loans and credit cards that went on the record, now everyone and his dog seems to be at it unfortunately.

Best of luck with it all anyway.

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

Thanks, have read your blog and will continue to work on getting creditors where I want them to be. Good luck with yours as well

Excellent! Next instalment due later on today !

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

Internet service provider is unlikely to be providing info. Utility companies don't supply data either.

You may find debt collection companies on there if they have been involved at any stages.

Other key is to make sure you are on the votors roll.

The reason more companies are supplying info is that due to the rules or reprocity you have to be a 'giver before you can be a taker' - information that is !!!!

If you have any questions re what is on the record let me know.

Probably the internet thing then. I disputed the bills as they had not cancelled the service but said I would pay for the calls only if they sent me an amended bill, as I had not been billed for the calls by my new provider. Then got a letter from a solicitor, sent him copy of all correspondence, got letter threatening court action, sent them same, not heard a thing since. If that is what it is, can I take this to the Ombudsman as the invoices are in dispute?