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Loan account closure - query

MWAUGH1983
MWAUGH1983 Posts: 203 Forumite
Hi,

When you pay off an account like say a loan what benefit - if any; does it give your credit file as I would assume it does something favourable.

Also when the loan has been paid off by way of a settlement; what does it mean when the company says that the credit file will be updated with a flag as partial settlement - what effect does this 'flag' have on your credit file.

Any advice would be appreciated!!

Cheers
Martin

Comments

  • CLAPTON
    CLAPTON Posts: 41,865
    10,000 Posts Combo Breaker
    Forumite
    a partial settlement says that you didn't pay your debt in full
    potential lenders will respond accordingly
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