Fixing a specific credit rating...help?

Question

2 years ago i had a contract phone & due to a dramatic change in circumstance (splitting from long term boyfriend) i couldnt afford it anymore. I rang & asked what could be done & was told i had to pay the entire contract length (£300). Of course if i could have afforded this i wouldnt have had to quit the contract so i stopped the direct debit. After moving and getting settled i contacted the company in writing & they never replied. Well 2 years later i have the default as a black mark on a otherwise great credit file - followed by a settled mark. It has dropped my rating to 568/1000 which isnt gonna get me the loan i want for my bus. i recently got a credit card & was accepted thogh this hasnt shown up on my rating yet.

So is there any point contacting the old phone people or am i gonna get stuck with a 300 bill & how will the credit card apply to my credit file points wise.All my accounts are up to date. i have just below average amounts of accounts.

DONT REPLY IF U DONT KNOW! ta.

Answer 1

Pay the freaking bill!

Answer 2

Your credit delinquency will remain on your credit report, however if you call the contract phone company and offer to settle the bill for a fraction of what is owed at least it will show as "paid" on your report and may slightly raise your score.  In addition to doing this, you should make sure your current balances on your other accounts are below 50% of their credit limits.  There must be other factors on your report such as high balances, etc. that has dropped your score so low.

Answer 3

The problem is that you did cancel the direct debit and did not pay the bill, also you said you tried to contact them and they did not reply, that can't really be viewed as a effort to sort things out on a argument side of things.

As such the black mark is correct and does stand, you could ask the credit reference company (who ever you use) about a "notice of correction".  This is how you have information deleted, amended, or corrected.  

Part of the credit file is your score, the OTHER part is the history.  

Say (for example) you have 900/1000 (looks good!).  The 900 is made out of 5 old loans you had in the past but if you miss all the payments and are in arrears and default them your history will let you down.  Although you have a good score, the history also make the outcome.

Ask about correcting your file and look around for the loan.  Difference places look for different scores that they are happy with, if your history is OK this might help.  

I must say though, it sounds like the black mark is not a mistake, so the correction might not happen, but it would reset your score if done.

As for the phone company:- Why have they put the settled marker on if your saying you have not paid the bill??

To be on the safe side, look to sort out your credit file and look around for the loan first, then save £300.  Once you have it call the phone people and pay it, you don't want this to start all over again 2 years down the line if they see that you have not paid it yet

Answer 4

I had the same problem with a cell phone company, where they wanted me to pay $350 per phone to cancel.  I pretty much did the same thing you did, and 2 years later we had a credit place calling us.  We settled with another company who I guess the phone company had called.  You know those companies that chase people down for another business so that business doesn't have to?  Anyway, they are willing to work with you on what you can pay and write it off as settled on your account.  If you have already settled, then you shouldn't have to pay anymore money.  If you haven't, then settle with them, because it looks better on your credit.  The credit card is a great idea if you use it the right way.  Only buy something on your credit card if you've got the money in your pocket to pay for whatever you're buying.  Once a month when you pay your credit card bill, pay MORE than the minimum balance.  This will help you improve your credit quite a bit.  Also, remember that every time your credit is run, it drops a few points, whether you're buying a car, changing insurance companies, whatever it is, so be careful with who you're letting run your credit.  Other than that, I don't know what else you could do.