Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Hercy
    • By Hercy 13th Jul 17, 8:32 AM
    • 2Posts
    • 0Thanks
    Hercy
    Old debt & impact on credit rating
    • #1
    • 13th Jul 17, 8:32 AM
    Old debt & impact on credit rating 13th Jul 17 at 8:32 AM
    About 5/6 years ago I was in all kinds of debt, lost my job etc.

    I have been working to pay everything off and rebuild my credit rating. And nearly there on the former, still some way to go on the latter!

    Anyway, I have an old payday loan which has a default date of January 2012, so is due to fall of my credit file in 6 months time. After several years of silence, I had a letter from a debt collection agency offering a reduced balance (about 40% of original balance) which would show on my file as "partially satisfied".

    I have no qualms about paying (in full or reduced) - it was the next and last thing to pay off. My question is how it will affect my credit file. I already read that if you do nothing, it will fall off after 6 years (Jan 2018), although of course you risk them submitting a claim in the meantime, but what happens if you pay in full or in part? In both events would it still drop off my file in Jan 2018. What is best to do in terms of my credit rating?

    Thank you
Page 1
    • sourcrates
    • By sourcrates 13th Jul 17, 9:08 AM
    • 11,604 Posts
    • 11,171 Thanks
    sourcrates
    • #2
    • 13th Jul 17, 9:08 AM
    • #2
    • 13th Jul 17, 9:08 AM
    Yes it will still fall off your file in 6 months regardless of what you do.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Hercy
    • By Hercy 13th Jul 17, 2:11 PM
    • 2 Posts
    • 0 Thanks
    Hercy
    • #3
    • 13th Jul 17, 2:11 PM
    • #3
    • 13th Jul 17, 2:11 PM
    Thank you Soulcrates, most helpful.
    • Arleen
    • By Arleen 13th Jul 17, 4:00 PM
    • 927 Posts
    • 684 Thanks
    Arleen
    • #4
    • 13th Jul 17, 4:00 PM
    • #4
    • 13th Jul 17, 4:00 PM
    Worth adding that if they go for the CCJ and get it, you will have to repay the amount within a month or face 6 years of having that hang over your head. So make sure that they have your current address and be on a lookout for court paperwork, as many debt collectors are now chasing up debts aggressively due to an upcoming change in legislation.
    • kink_bosslady
    • By kink_bosslady 13th Jul 17, 8:46 PM
    • 12 Posts
    • 4 Thanks
    kink_bosslady
    • #5
    • 13th Jul 17, 8:46 PM
    • #5
    • 13th Jul 17, 8:46 PM
    With a partial I think it's more to really do with future lending. When creditors are doing a check they do more than look at the score so that's probably why they have advised of it just in case as it might up interest rates etc. as mentioned after 6 years a default drops off anyway, but as also mentioned a default is there to give companies the right to take legal action in that timeframe which as mentioned could result in a CCJ
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

92Posts Today

2,862Users online

Martin's Twitter