Rebuild your credit score by removing defaults

If you are in a lot of debt or are struggling to make payments then trying to rebuild your credit score should not be the number one concern, you should get out of debt. There are plenty of places out there that can help you become debt-free like us at Scottish trust deed.

Electoral roll

Those who are not on the electoral roll will find it very hard to obtain credit.

Being on the electoral register doesn’t require you to vote. To join the register you can apply online or via post. If there are multiple tenants in your household they can also apply.

Take out some credit if you have not already

Having no credit doesn’t mean you don’t need to rebuild your credit score. Just because you have not taken any credit previously does not make you have a high credit score, yes it will be a clean record but creditors will find it hard to prove that you can constantly keep up with your payments without any previous records. You might find it useful to start by taking out a phone contract or a store credit card.

Too much new credit can have a bad effect on your credit score

When you apply for credit you will find creditors will perform two different types of credit checks, 1) a soft credit check, 2) a hard credit check. Hard credit checks are visible to credit providers. Having a lot of hard credit checks in a short period can impact your score in a negative way.

After two years hard credit checks are removed from your credit file.

What are defaults and how do I remove them?

Defaults usually occur when you fail to make payments to your accounts with the bank or your internet provider, your phone contract provider, and other utility companies over a 3-6 month period. regardless of the amount a default can still happen.

Defaults are the biggest killers to your credit score having them on your file will make life much harder to obtain credit.

You can avoid the default from happening if your creditor provides you a default notice, this notice gives you time to play catch up with what you owe, it is majorly important that you pay the full amount to stop the default from happening.

Defaults will remain on your credit score for six years regardless if you pay it or not. unless it is proven to be an error then it can be removed.

Get help with a Scottish Trust Deed

A Trust deed will have an impact on your credit score but it can also prevent CCJ’s, Wage/bank arrestments and can allow you to pay back your debts at an affordable rate whilst writing off up to 81% at the same time.

Contact us

We are open Monday – Thursday from 09:00 – 20:00 and Fridays from 09:00 – 17:00. Click here to talk with us on Facebook and one of the agents will get your case started.

 

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