Arrangement to Pay and Credit Score

Dannydebt

Hi,
I have a Arrangement to Pay (AP) marked on my credit file, will this affect my credit score, and if I pay it off in full will it still stay there for 6 years and still effect it ?.

Thanks.

GeorgeUK

If there is a default against the debt, then this will stay on your account for 6 years and impact your credit score during that time. If there is no default and you pay it off in full, the missed payments will impact your credit score but not as much and after 2 years will have little impact on your score.

The account will still show on your credit file for 6 years after is is closed though.

Jamiekc

Always good to know. I signed up to the Experian free look at my credit history to check that I did indeed have 7 months on one account with AP marked (correctly unfortunately....didn't realise quite what I agreed to!)

This was over two years ago however, I settled the debt after 7 months and everything else was ok on my credit file.

I subsequently applied for the A&L premier switching with overdraft facility, and was accepted immediately. I'll let you know the level of OD that I get, but hopefully it'll be reasonable and I can close my HSBC OD.... However it shows that my credit is not bashed too much by this.

Hopefully you'll be the same!