Credit card question

INFINITY_2

Hi Guys

I have a question for you.

By asking credit card companies for a settlement figure to clear my cards, am I going to have any effect on my credit rating for the future?

Look forward to any replys.

never-in-doubt

None whatsoever. Neither positive or derogatory.

NickX

INFINITY wrote: »

By asking credit card companies for a settlement figure to clear my cards, am I going to have any effect on my credit rating for the future?

Asking for a "Full and Final" settlement will not have any effect on your Credit Rating, but if they agree to one they will likely mark your credit file to show that the account was only "Partially paid" unless ofcourse you are able to negotiate no derogatory data as part of the settlement.

Remember with "Full and Final" settlements you need to get everything in writing before paying them a penny, otherwise they have a nasty habit of attempting to come after you for the remainder of the balance.

never-in-doubt

Sorry, maybe I misunderstood. I assumed the OP asked for settlement (i.e the balance) in which case he would then ring and pay it. A F&F settlement is a different kettle of fish, as nick points out.

It is unlikely any F&F offer would be accepted by the creditor, usually the DCA deals with these and accepts lesser amounts which will be marked on your credit file as AP or Settlement.

INFINITY_2

Hi Guys

Thanks forthe replies, I think l am following them.

Just to be clear from my point..... I know my balance's outstanding and l am hoping the credit card companies will knock something when l ask for a settlement figure.

Are the above replies you have given still the same.

Thanks

never-in-doubt

INFINITY wrote: »

Hi Guys

Thanks forthe replies, I think l am following them.

Just to be clear from my point..... I know my balance's outstanding and l am hoping the credit card companies will knock something when l ask for a settlement figure.

Are the above replies you have given still the same.

Thanks

Right, so you're requesting what is known as a F&F settlement in which case be warned, they are likely to refuse and if they do accept, they may add data to suggest you paid a part settlement and not the full balance.

To be honest, no harm in asking but i know what they will say - sorry, we don't offer F&F settlements (which most dont) :beer:

exel1966

INFINITY wrote: »

Hi Guys

I have a question for you.

By asking credit card companies for a settlement figure to clear my cards, am I going to have any effect on my credit rating for the future?

Look forward to any replys.

It won't affect your credit rating in any form until you reach an agreement at the F+F stage, however a request such as this will act as a trigger to the card company that you are possibly experiencing difficulties which could lead to them making all sorts of decisions about your current credit line you have open with them, whether any agreements are made or not.

It's never a good idea to give a card company any hint of 'difficulty' unless it's your very last resort/option.

INFINITY_2

We have no intention of keeping these cards once they are paid off.

Do you have any suggestions of how best to go about asking them for a reduction........ these cards go back a long time (4 yrs) and they have had their ounce of flesh in interest and we just want rid of them now.

never-in-doubt

Best bet is to just repay the balance - they won't reduce it for you, its not in their interests to.

exel1966

INFINITY wrote: »

We have no intention of keeping these cards once they are paid off.

Do you have any suggestions of how best to go about asking them for a reduction........ these cards go back a long time (4 yrs) and they have had their ounce of flesh in interest and we just want rid of them now.

Is this a case of not wanting to pay and chancing your arm looking for a reduction because they've 'had their ounce of flesh'

OR

that your financial position dictates that you currently cannot afford to repay the debt ?

INFINITY_2

It is a case of hopefully having a bit of money coming in shortley , and wanting to do the right thing and clear as many card debts as possible. If l am able to get reductions on some of the balances l may be able to clear them all.