I VERY naively signed up to a Part 9 Agreement in 2017 as I was having trouble paying back a loan due to a redundancy and being unable to find work. My bank was not willing to negotiate for a long period of time so I felt stuck.
I paid my loan off through a Part 9 in 2020 however I have a 5 year term so it doesn't come off my record till 2022.
I have learnt a lot, have a great job now and have saved a decent house deposit with my partner.
My question is, has anyone purchased a house after a Part 9?
How did you improve your credit rating? (My credit rating is in the 200's at the moment so VERY poor). I'm hesitant to apply for a credit card or loan incase I get knocked back and get another mark on my credit file.
Thanks
4 Replies
Look into when it comes off your credit report as I’m almost certain it’s 5yrs after you pay off the debt not 5yrs from when you sign the agreement.
Absolutely not the case. It's 5 yrs from signing. As long as all of its paid off. If you pay it off in 5 yrs, it clears off your credit rating 5 yrs and 1 day after entering (been there done that :-) )
I had a part 9 agreement,mine ended after 5 yrs from when I first signed . Within 6 months my rating went up to 700 . I wouldn’t apply for credit as you will likely get knocked back and it will sit on your rating keeping it low . Wait till your 5 yrs is up and see then . I check my score through wisr.com.au every 3 months , it’s both Expedia and Experian
Do not apply for credit whilst it is still on your file. Every time you apply for credit it reduces your score and you will not get credit during the debt agreement. Any applications that are knocked back now twill remain visible for 5-7 . You're far better off waiting and starting again with a blank page. It will clear off your credit file 5 years and 1 day from the time you signed the dotted line. It's not naive to enter something like this if there's no option to negotiate with your creditors. what you did was pay off your debts rather than burying your head in the sand.
I've been through this. Credit rating was 200 the entire time I was in the debt agreement. 1 month after it ended it was up at 600.. a month after that 800.
We saved a deposit, & then financed the rest for a new car and there was absolutely no hiccups, no issues regarding the debt agreement or anything. Credit rating now remains good.
I honestly do not regret having gone into my debt agreement.