Help with arrangement to pay

funky_fiddler

Hi,
I have a barclaycard account that is currently marked arrangement to pay on my equifax file- the interest is about 1.5% though I am paying more than my minimum payment- I got in t a bit off a mess one month last year as I wasn't paid for some work ,wrote to them so they put me on a payment plan. I have since tried to tell them I can afford to pay etc but they are not responding and my account still says this- argh.
Anyway, I think I should be able to scrape together enough to pay this off in full in a couple of months- do you think I should try to get them to remove the AP markers if I pay off the full balance??- I'm also worried because OH and myself are thinking of buying a house next year and my credit rating is rubbish even though everying else on there is fine.

Thanks so much!!

Chloe

TFD_2

I'm not meaning this in a harsh or judgemental way, but I'll tell you how I see it...

If the account has had an arrangement to pay on it, then this really has to stay on your credit report. The idea of a credit report is for future lenders to see how your previous payment history has been. With this information, they can then make up their own mind about whether to lend to you, and how much of a risk you are likely to be.

Statistically, people that have previously had arrears, arrangements, CCJ's, defaults, etc. are more likely to fail to pay in the future, hence being penalised with higher interest rates, or being refused altogether.

Certainly this issue is likely to prevent you from getting a competitive mainstream mortgage next year I'm sure.

funky_fiddler

I had gathered that:rolleyes: I already have a mortgage of my own but we were hoping to buy somewhere together- do you think I won't be able to do this for 6 yrs untill this info has gone from my credit file. I haven't defaulted and have a score of 978 on experian my equifax score is a different story though! We have a good deposit and OH is squeaky clean- I feel such a ninny for getting myself into this!!

TFD_2

funky_fiddler wrote: »

I had gathered that:rolleyes: I already have a mortgage of my own but we were hoping to buy somewhere together- do you think I won't be able to do this for 6 yrs untill this info has gone from my credit file. I haven't defaulted and have a score of 978 on experian my equifax score is a different story though! We have a good deposit and OH is squeaky clean- I feel such a ninny for getting myself into this!!

I'm sure there are people better qualified than me to answer that, but my understanding is that an arrangement to pay is less damaging than a default or CCJ, and it may only be taken into account for a few years, rather than 6. Either way, I would guess it will mess things up for you next year.

Be aware that your equifax / experian credit scores are pretty meaningless - they give an idea of how your file looks, but as all lenders have their own formulas and treat the information differently, this doesn't always mean very much.

Lenders are being more cautious than ever, and it would be surprise me if you would get a mainstream mortgage product with recent adverse information such as that, irrespective of your OH's history and deposit.

izools

But still,

If I were in your position, I would write to them, offering full and final settlement in return for removal of the "Arrangement" special instruction indicator.

Advise that if they are unable to retrospectively remove the "Arrangement" indicator you will continue paying at the agreed reduced rate.

Also point out that the money you would be using to clear the balance should they retrospectively remove the AP marker, would be someone else's not yours so they would get nowhere demanding you use that money anyway.

It's a bit of a bluff and a blag, but it couldn't hurt to give it a try.

It's no great shakes if they say no, at least you'll have tried. And in any case, an AP doesn't affect your credit rating nearly as much as arrears, defaults, etc.

And some creditors don't even register the difference between an account in AP and an account paid up to date.

NOTE: IGNORE THE EXPERIAN CREDIT SCORE!!! It's a load of rubbish. It doesn't even take into consideration defaults when calculating your score! The Equifax score is far more accurate but there again it's still going to be a different score sheet to what the creditors are likely to use.

funky_fiddler

Thankyou so much.

I'll do that I think- fingers crossed! I do have the money to pay it off in full next month so here's hoping.

Thanks again
xx

funky_fiddler

Hi everyone,
I sent the letter to Barclayceard saying that I would pay off the whole balance etc and they sent me a generic letter back telling me that my balance was £xx and that was it. Nothing about removing the markers or answering my original letter. Should I write again- I would rarther write then phone an Indian call centre!!:o

CannyJock

funky_fiddler wrote: »

Hi everyone,
I sent the letter to Barclayceard saying that I would pay off the whole balance etc and they sent me a generic letter back telling me that my balance was £xx and that was it. Nothing about removing the markers or answering my original letter. Should I write again- I would rarther write then phone an Indian call centre!!:o

If they didn't answer your original letter, you can send a copy of your original letter, a copy of their reply and a letter asking them to answer your original letter to their complaints department - saying how disappointed you are that a reputable major global bank would failed to understand the content of a simple letter.

Does no harm to be balshy