Arrangement to Pay - Credit Record

Kacsa99

I'll try and keep this brief.

I have been waiting for today for a long time. The two defaults which (I thought) were dragging my credit record down dropped off all my credit files today as the six years have passed since default.

I logged in to my "Checkmyfile" account today and found the update button ready to click so I duly clicked it in excitied anticipation expecting there to be some difference in the score to reflect this milestone passing.

There was a difference - on one account (Equifax) - my score has gone down On the others there was no difference whatsoever.

I would like to understand if anyone can explain how nefarious defaults can be removed from an account and the score go down. This makes no logical sense to me

I phoned someone at "Checkmyfile" who suggested that my problem is no longer a default history but instead is an arrangement to pay that appears on there nearly six years ago.

Now the bit that caused me some anxiety : Although the arrangement to pay was nearly six years ago, the account was settled in full and closed in Jan 2008. My source told me that this arrangement to pay will remain on the file and adversely affecting my credit score for six years FROM THAT DATE.

So, having spent the last 6 years mentally ticking down the days until March 2009 when I could look forward to a more normal relationship with credit it now appears that this wont now happen until some time in the middle of 2014!!

Perversely, it seems, it would have been far better if I had allowed that account to default at the time instead of attempting to make good in a bad situation (I was redundant so funds were sparse). If had done so that default would be dropping off about now and I wouldnt have the problem.

Can anyone shed some light on whether this information I have been given is correct or if there are any avenues I can pursue to help remove this. If it helps, I continue to have a relationship (albeit a different product) with the original lender and have managed it impeccably since.

Any help or similar experiences welcome.

GeorgeUK

What they have said is correct. Usually when you have a default issued, the account is closed and will remain on your credit file for 6 years. Any other account will remain on your credit report for 6 years after being closed too so if this account you were making the paymetns towards was not closed, it would not have gone from your file.

It might be worth checking and confirming that the account is now closed and see if it was closed before incase they can update the CRA data.

I don't think this will have a negative impact on your account for the full 6 years. Basically any creditor will see that you have made late payments to an account that is now settled in full. I doubt that their calculations for your credit score will take this into account at all after 2 years and it will have less impact as time goes on so every day your score will improve a little.

Kacsa99

Thanks for this.

Perhaps not as bad as I thought but still an irritant.

Any ideas why a credit score would go down when the worst of the record is removed ?

I have a number of active and well managed accounts but I haven't been applying for credit in the the last year or so. Dont know if this has a significant impact but it is the only area where the Checkmyfle summaries indicates it to be a negative consideration.