Thursday, 1 July 2010

How to look good on paper.

So I am at the grand old age where I'm thinking about the fact that I would like to get on the property ladder. But wait. I can't. Because through my own naivety or possibly, stupidity I took out a few loans and creditcards back in the day when I earned a low wage but lived in the most expensive city in England. Now I live in one of the most deprived cities in England and earn good money...but due to the debt incurred by the former I'm blacklisted.

When I moved back to Liverpool 5 years ago I was unemployed for 6 months. I was withdrawing cash from my credit card to put into the bank to cover the monthly loan and credit card payments. It was a big old mess and in the end, when my debt repayments were 82% of my monthly income, I signed up with a debt management company to help me out. Of course back then I was only taking home £600 a month. 4 years later after progressing well in my career I'm much better off. But I was warned at the start of the program that it would go on my credit report and I wouldn't be able to get any future credit.

So out of interest I applied to look at my credit report with Experian. And get this...I had a credit score of 842 - FAIR! apparently only 38% of the population have a higher than fair score. That doesn't sound so bad!
And I checked my report and there's nothing on there that even refers to my old debts. It shows a quite reliable person who pays her mobile phone contract and her monthly bank fee on time.

So where's my badcredit gone? Coz trust me - I'm still paying it off!

And what does that mean? If I applied for a mortgage would I not be laughed at as I'd imagined I would?

Well anyway. I'm a long way off saving money for a deposit and such like as yet and when I do I dare say I will have finally repaid all my debts.

But still I'm feeling much happier about my credit rating/score safe in the knowledge that I'm not on the mythical blacklist afterall!!