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  • FIRST POST
    noah271007
    Arrangement to Pay (AP)
    • #1
    • 14th Apr 09, 10:50 PM
    Arrangement to Pay (AP) 14th Apr 09 at 10:50 PM
    Hello guys!

    I'm back from a long break, how have you all been? I hope no one have been missing me!

    I will get the CRA's information updated as soon as possible, and start a new thread shortly. So Underground, just bear with me!

    I have started a new thread on the subject of 'Arrangement to Pay' that some lenders report to CRA's.

    AP has not been widely discussed so out of curiously, how damaging is AP on credit file? I know for a fact some lenders would accept payment plan to pay back debt like freezing purchase interest on account, but often do not discuss/inform to customer that accepting such plan would mean serious damage to their credit worthiness as a result.

    Is it on par with one late payment or more?

    Does it continue to affect credit worthiness for as long as 6 years?

    I used to have several of them with 02, but they have removed the default and data off my credit files so i am lucky.
Page 3
    • helpwouldbegreat
    • By helpwouldbegreat 18th Dec 15, 11:34 AM
    • 20 Posts
    • 3 Thanks
    helpwouldbegreat
    i have a AP on my credit for 1 month in 2014 and it wasnt even for the whole month it was for an extra 9 days,I was never told that this would effect my credit score nor was i told it would be reported to the CRA when i was offered it, ive now paid in full the remaining balance and closed the account, but still stuck with this ugly AP on report, is there anything at all i can do to get this taken off my credit report as like i said at the start i was never informed that it would be reported to the CRA: mad:
    thanks
    • grumbler
    • By grumbler 18th Dec 15, 12:11 PM
    • 51,387 Posts
    • 21,753 Thanks
    grumbler
    If it's a true fact, I don't see any reasons for it to be removed from the history. I don't think that lenders have any obligations to inform you about reporting facts, except, possibly, a default.
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
    • curve2722
    • By curve2722 20th Apr 17, 12:17 PM
    • 7 Posts
    • 0 Thanks
    curve2722
    Hi guys, sorry to bombard an old account but .....

    I was wondering what is best in my circumstances for example:

    I have an active payday loan (lending stream) sitting on my file from May 2014 when it went in to default (so stupid of me!). This loan is still active and still giving me red DF markers every month.

    What is the best situation i can do try and help myself obtain credit in the near future.

    The original loan was for 400 and is defaulted at 300 and speaking to the company directly they request 500 to clear it - which i dont have.

    My alternative is to call the debt people and go an AP.

    My question is, when it defaults in May 2014 and i go in to an AP April 2017, on to which date will it consider the 6 years before dropping off? (as long as AP is reported to CRA's and payments kept up to date).

    Thanks.
    • zx81
    • By zx81 20th Apr 17, 12:25 PM
    • 11,559 Posts
    • 11,564 Thanks
    zx81
    6 years from default.
    • curve2722
    • By curve2722 20th Apr 17, 12:42 PM
    • 7 Posts
    • 0 Thanks
    curve2722
    ive been told that if you keep a clean 3yrs on your file you can normally get a mortgage preferably with higher rates.

    Going through an AP lets say cleared by Aug 2017 and I apply for mortgage Aug 2018, will this AP have a negative affect?

    Way i see it is, either pay the company in full or try and avoid in paying (hoping no CCJ occurs) in order for a mortgage to go through for next year - since what ive read 3yrs clean file is normally ok for mortgage applications.

    then again, the mortgage provider may see outstanding debt over 3 years ago and consider this worse then an AP from a year ago.... still not sure what my better option is (except for paying in full).
    • zx81
    • By zx81 20th Apr 17, 12:48 PM
    • 11,559 Posts
    • 11,564 Thanks
    zx81
    The AP is irrelevant. The default is what is showing on your files.
    • eskbanker
    • By eskbanker 20th Apr 17, 12:51 PM
    • 4,432 Posts
    • 4,152 Thanks
    eskbanker
    Are your mortgage aspirations realistic anyway, i.e. if you're unable to raise 500 to pay this off in full, how would you intend to round up a mortgage deposit by next year (and then service the mortgage itself thereafter)?
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