Should I satisfy all my debt or wait till removed?

Dale6391 · 24 March 2018 at 9:19AM

Hi, First time poster here...

I ruined my credit when I was young and reckless, according to experian I have a total defaulted balance of £3,026 with 7 different companies, the largest debt for £2,123 is due to be removed from my file on the 1st of May 2018 and the rest by mid 2019.I also have 1 satisfied CCJ due for removal this year and another CCJ for £868 due for removal in 2021 (did not even know I had this as it was sent to an old address and I was not notified of the debt)

I currently have the following scores:
Equifax: 122 very Poor
Experian: 536 very poor
Noddle: 510 poor

As I am now looking to fix my credit and get back in the green I am wondering if it is it worth me waiting until 2019 for everything to fall off my file? (I understand if i now settle any of these debts that they will remain on my file for another 6 years) and when these fall off my credit file will this increase my score or lower my score?

I appreciate your help, thanks.

Pixie5740 · 24 March 2018 at 9:23AM

Dale6391 wrote: »

Hi, First time poster here...

I ruined my credit when I was young and reckless, according to experian I have a total defaulted balance of £3,026 with 7 different companies, the largest debt for £2,123 is due to be removed from my file on the 1st of May 2018 and the rest by mid 2019.I also have 1 satisfied CCJ due for removal this year and another CCJ for £868 due for removal in 2021 (did not even know I had this as it was sent to an old address and I was not notified of the debt)

I currently have the following scores:
Equifax: 122 very Poor
Experian: 536 very poor
Noddle: 510 poor

As I am now looking to fix my credit and get back in the green I am wondering if it is it worth me waiting until 2019 to wait for everything to fall off my file? (I understand if i now settle any of these debts that they will remain on my file for another 6 years) and when these fall off my credit file will this increase my score or lower my score?

I appreciate your help, thanks.

Why do you care? Equifax, Experian and Noddle don't lend money so how they rate you is irrelevant.

Repaying your debts won't mean they will remain on your credit files for another 6 years as they will still be removed from 6 years when you first defaulted.

It's your responsibility to inform your creditors when you move so if you didn't do that then it's not the creditor's fault that they send the court papers to an old address.

Is there a particular reason you want to improve your credit history? For example, do you see yourself applying for a mortgage or perhaps looking to rent somewhere?

Dale6391 · 24 March 2018 at 9:30AM

Hi,

Thanks for your response. I know that the credit agencies don't lend me money but they do report to those who lend money so I need to care. Having poor credit affects more than just "Lending Money" so how they rate me is very very relevant.

Thanks for clearing up the 6 years for me I didn't know that, however my question wasn't answered, do I wait for them to be removed or pay them all off, will that benefit my score at all?

I understand it is my responsibility but as I stated in the first sentence I was young and reckless, so therefore didn't see the necessity of doing so, now however is a different matter.

Yes, I want to improve my credit history as I will be looking to get a mortgage in a few years time, I am now in a stable career and thinking about the future. I simply want to get back on top to be honest.

John-K_3 · 24 March 2018 at 9:38AM

You say that you were young and reckless when you ran the debts up. If you think that you are now less reckless, and more responsible, then would it not make sense to take responsibility for your actions, and pay back what you owe?

Not paying back is asking someone else to pay for your actions.

How can you say that you accept that it is your responsibility, yet still not want to take on the burden of your actions?

[Deleted User] · 24 March 2018 at 9:39AM

Ignore the scores as they're made up and no one sees or cares about them.

What lenders will see is the history on your files.

When did the accounts default?

Dale6391 · 24 March 2018 at 9:44AM

Hi John-k

never once did I say I was not going to pay for them, I asked a question as to whether it would benefit my score more to satisfy them by paying them or to leave them to fall off.

I thought this forum was meant to productively help people not to call them out on their errors. Please read my question thoroughly.

Dale6391 · 24 March 2018 at 9:47AM

Hi !!!

Thanks for your response and clearing that up for me. The first account defaulted in 2010 the last 2013, I haven't applied for credit since 2013.

[Deleted User] · 24 March 2018 at 9:54AM

Accounts are removed from your files 6 years after default.

So unless you've acknowledged or made payments to the account/s that Defaulted in 2010 then they should be removed from your files.

A full breakdown of each account would help here.

System · 24 March 2018 at 9:55AM

id wait for them to drop off but if in the meantime any companies start chasing you for the money then just pay it because until they do there is still a window for them to get anothr ccj against you which then would stay on your report for another 6 years.

Pixie5740 · 24 March 2018 at 9:55AM

Dale6391 wrote: »

Hi,

Thanks for your response. I know that the credit agencies don't lend me money but they do report to those who lend money so I need to care. Having poor credit affects more than just "Lending Money" so how they rate me is very very relevant.

They categorically do not report the scores to any lender. There is no such thing as a universal credit score every lender will rate you differently based on credit history, affordability and past dealings with them.

Dale6391 wrote: »

Thanks for clearing up the 6 years for me I didn't know that, however my question wasn't answered, do I wait for them to be removed or pay them all off, will that benefit my score at all?

Why do you care about these scores? In fact, let's just ignore the scores entirely, why do you want to improve your credit history? Do you want to borrow more money? h, I see further down that you want to get a mortgage in the future.

Dale6391 wrote: »

I understand it is my responsibility but as I stated in the first sentence I was young and reckless, so therefore didn't see the necessity of doing so, now however is a different matter.

Yes, I want to improve my credit history as I will be looking to get a mortgage in a few years time, I am now in a stable career and thinking about the future. I simply want to get back on top to be honest.

There's more to it that your credit history. Lenders keep their own records which can go back much further than the 6 years the credit reference agencies hold. Therefore, whilst your credit history might look great in a couple of years if you apply for a mortgage from a lender you defaulted with when you were young and reckless they could still knock you back for a mortgage.

Settling the CCJ will look better to mortgage lenders than having an unsettled CCJ on your credit history. As for how to tackle the others it depends on how old the original debts are because it might be worth sending prove-it-letters to find out if the debts can be removed from your credit files completely.

https://debtcamel.co.uk/prove-it/

If not then you could probably get the debts to show as satisfied by offering full and final settlements to your creditors.

Richey_ · 24 March 2018 at 10:34AM

If / when they obtain ccjs on the defaulted accounts then that will mean another six years on your credit files. They only have to send the paperwork to the last known address they have for you and not your address on a credit reference agency. If you pay it within 28 days in full plus costs it will not go on your credit report, if it appears because you haven!!!8217;t updated them you will need to pay £255 for a set aside and then hope a judge agrees with you. Non updating of address is not a reason to set the debt aside.

Personally I would try to negotiate full and final offers on them. Just because they drop off your credit files doesn!!!8217;t mean you don!!!8217;t owe the money. It becomes statute barred six years after the last payment /acknowledgement of the debt.

On the run up to the six year mark is when they are most likely to go for a ccj and as you have seven accounts in default it is likely at least one or two will which will remain on your file for another six years.

You owe the money, it!!!8217;s a relatively low sum. Personally I would negotiate full and final offers for all and not run the risk of another six years of credit issues.

Should I satisfy all my debt or wait till removed?

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