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    • Kanada
    • By Kanada 10th Oct 16, 2:06 PM
    • 1Posts
    • 0Thanks
    Arrangements to Pay -How this effects a credit file
    • #1
    • 10th Oct 16, 2:06 PM
    Arrangements to Pay -How this effects a credit file 10th Oct 16 at 2:06 PM
    Hello I've had issues with arrears on a few credit cards and my mortgage . I came to an affordable monthly repayment plan with my creditors that I always thought would be a better option than having missed payments markers or enetering into IVF . I pay a monthly amount very close to the normal monthly minimum requested so I don't feel like it's really doing me any favours on making my debts manageable , and this is on each credit facility that I currently am on an arrangement plan on .

    Needless to say my credit score has not risen at all even tho I'm making large payments each month and on time as agreed. My credit file shows the AP marker which makes me feel quite comfortable knowing I have everything in order and I'm not showing as late on any months . I'm getting the feeling tho that this AP marker may not be such a good thing .can anyone tell me what true effect the AP marker is having on my credit file and what are better options than this for me to increase my score
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    • zx81
    • By zx81 10th Oct 16, 2:10 PM
    • 8,941 Posts
    • 8,744 Thanks
    • #2
    • 10th Oct 16, 2:10 PM
    • #2
    • 10th Oct 16, 2:10 PM
    It's not great as it shows you can't make contractual payments. If only for a short period, perhaps better then a default, but a default would fall off your file after 6 years, whereas an AP won't.

    If the amount is close to the contractual amount, get off the arrangement.

    Ignore your credit score. Lenders will take their own view from your file.
    • Thrugelmir
    • By Thrugelmir 10th Oct 16, 2:11 PM
    • 50,639 Posts
    • 42,383 Thanks
    • #3
    • 10th Oct 16, 2:11 PM
    • #3
    • 10th Oct 16, 2:11 PM
    An AP marker will have a negative impact. In effect you have defaulted on the contractual arrangement by not making payments in line with the agreed schedule or terms.

    To improve your "score". You need to settle and clear these debts. Time is the healer. There's no quick fixes.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • 20aday
    • By 20aday 10th Oct 16, 5:53 PM
    • 1,628 Posts
    • 662 Thanks
    • #4
    • 10th Oct 16, 5:53 PM
    • #4
    • 10th Oct 16, 5:53 PM
    As someone who's had AP markers in the past zx81 is right in pointing out they'll last much longer on your credit reports than someone who's defaulted.

    Thrugelmir is also right in the fact there are no "quick fixes".

    In terms of credit when the time had come and I'd repaid my debts I found some lenders wouldn't touch me with a barge pole and those that did gave me low credit limits with high APRs.
    It's not your credit score that counts, it's your account conduct and credit history.
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