Settlement affect credit score?

Skintbuthappy_2

Can anyone tell me if agreeing a settlement figure with Virgin Credit Card will infact make my credit rating worse by putting a flag in the score even more by agreeing a settlement figure rather than paying it off normally?

Any help would be greatly received!

YorkshireBoy

They could mark your file with either 'arrangement to pay' or 'partial settlement', and both will damage your credit rating for some time.

Sammy_Girl

Have you agreed a settlement figure yet?

Usually lenders will not even entertain a full and final settlement unless you default on the agreement, and that would have already blackmarked your file. If you have been making your monthly payments on time, then it is unlikely that they will offer you a full and final because as far as they're concerned you've been making the payments just fine, so why should they accept less than the full amount?

Beware, that if you want to offer a F&F then this will seriously damage your credit rating.