Can A Bad Credit History Affect Uk Indefinite LTR?

Is DEFAULT and CJJ are same?

I was in UK in till JAN 2012 and further I left to India. Then on August I found out I had some payments to pay and I paid all off. I discovered this after I went through my credit file. Anyway, I have got 7 Default and I checked on my credit file too and the status on my credit file on default accounts shows SATISFIED. All are settled with right payments. In my credit file, it did not say anything about CJJ so practically I have got no CJJ.

Further I have checked with Trust online too and there is no case registered against me in old and present address too.

I will be applying for my visa soon and worried that whether I had CJJ or not? Because there is one question asking me

9.3. do you or any dependants who are applying with you have any civil judgments against you or any civil penalty under the UK Immigration Acts?

I really dont know what to answer.

A Default is where the organisation notifies the Credit Reference Agency of your failure to pay a debt.

A County Court Judgement (CCJ) is where the organisation has registered the debt with a court. In effect, giving them additional powers to collect the debt as well as harming your ability to obtain further credit.

In both cases, these defaults stay on your credit history for 6 years. If they have subsequently been paid the organisation should notify the credit reference agency and they will mark them as satisfied. Although your history will be repaired, some lenders may still refuse to give you credit.

As for your application? A simple default is really a matter between you and the lender/organisation and I don't believe they could in anyway be considered as civil penalties or judgements. CCJs though, I believe would.

As you've checked your record and have satisfied yourself that there are no outstanding matters or CCJs against you; I think you could safely answer the question 9.3 as no.

Let me add two small caveats... If you suspect there may still be unpaid loans/bills outstanding, chase them up and ensure they are settled. Some lenders take many months to process their old debtor accounts and it would be unfortunate if a CCJ were to be actioned just as your application was being processed. Also, keep your credit history checks/records/evidence of payments just in case something comes to light during the application process. At least you will be able to demonstrate you not only checked if you had any unknown penalties but that you also took steps to clear those matters you did know about.

I hope that helps?

ID29 wrote:A Default is where the organisation notifies the Credit Reference Agency of your failure to pay a debt.

A County Court Judgement (CCJ) is where the organisation has registered the debt with a court. In effect, giving them additional powers to collect the debt as well as harming your ability to obtain further credit.

In both cases, these defaults stay on your credit history for 6 years. If they have subsequently been paid the organisation should notify the credit reference agency and they will mark them as satisfied. Although your history will be repaired, some lenders may still refuse to give you credit.

As for your application? A simple default is really a matter between you and the lender/organisation and I don't believe they could in anyway be considered as civil penalties or judgements. CCJs though, I believe would.

As you've checked your record and have satisfied yourself that there are no outstanding matters or CCJs against you; I think you could safely answer the question 9.3 as no.

Let me add two small caveats... If you suspect there may still be unpaid loans/bills outstanding, chase them up and ensure they are settled. Some lenders take many months to process their old debtor accounts and it would be unfortunate if a CCJ were to be actioned just as your application was being processed. Also, keep your credit history checks/records/evidence of payments just in case something comes to light during the application process. At least you will be able to demonstrate you not only checked if you had any unknown penalties but that you also took steps to clear those matters you did know about.

I hope that helps?

Thanks for your kind information. I am so relaxed now. Yes all been paid up and keeping credit file, my bank statement where it will show agency taken money, phone conversation records, etc. I know it would be very hard for me to get credit but as a matter of fact I have Natwest credit card which offers some credit hopefully my credit will build up from there.

CCJ and Defaults do not affect your ILR application and even your British Citizenship.

All you have to do is provide a proof that you have agreed a payment plan with your creditor and provide proof of it.

I have first hand experience of reviewing an application of a person who had CCJ (£10K outstanding) and many defaults and he got ILR and British Citizenship without any issues.

You do not need to declare defaults on your application but you do have to declare CCJ, even if it is satisfied.

I hope this helps.