citi agreeing to payment plan what will this do to my credit rating?

izools

Yes you need to be 100% sure that they will record an "AP" marker and report the account status as "undisclosed" or "0". Most report as "undisclosed" but the only thing to be sure of is that they don't report the account as in arrears as this will have a much bigger impact.

If you get it in writing that they have accepted your offer then they are legally bound to record the AP marker and not report the account as in arrears otherwise they will be in breach of the Data Protection Act, but still worth making sure this is how they will do it.

If you are planning on moving you could always "port" your mortgage if unsuccessful getting a new one as this is less likely to involve a fresh credit check. Note however that they bank may be prepared to only offer a safer LTV of maybe 65% or so if you have the AP marker.

niknax2955

thank you izools. I wont have to apply for a mortgage for a while because my partner has a mortgage. So will wait to re-mortgage on his house when I know my credit rating is better.

But have heard that having a AP makes your credit report look bad for six years, dont feel he would be too pleased with me not having a joint mortgage for that long....!!

Just hope that once my house is sold and only one AP showing and all the creditors repayed then it will start to look more healthy??

izools

The AP marker will stay there for as long as the account is arranged. Once you take the account out of an arrangement, this will also show. You will have an arrangement start date and end date marked along side the account.

Once the account has been paid off / out of an arrangement for six months to a year, it will have near-as-makes-no-difference to your score whatsoever. Most certainly much less than arrears or defaults!

Whilst the card is in an AP, it will have a minor effect like I've explained above. I think you'll be fine especially if you hold off applying until after you've closed the Citi account altogether - closed accounts are weighted much lower than active accounts when calculating a score anyway

niknax2955

thank you so much for all your advice. I hope your mum is ok with her AP Izools and fingers crossed she will get to close her AP soon.

izools

niknax2955 wrote: »

thank you so much for all your advice. I hope your mum is ok with her AP Izools and fingers crossed she will get to close her AP soon.

Bless her she's worked extremely hard, her Barclaycard is down to under £4,500 now but she's reaching retirement age in July and is toying with the idea of selling up, clearing her debts, and buying a park home outright... she can't remortgage as she is only temping; hasn't had a stable job for a couple of years, and her current mortgage is due to be paid in full within two years, so she's somewhat stuck up preverbial creek at the moment, but I'll help her in whic ever way I can

And of course good luck to you

niknax2955

My friend has a park home and loves it. You can not have a mortgage but then if you mum can buy outright, she would have a great social life!! My friend has and she is not retired and they really look after her. She lives near the sea and people are really socialible and most of the sites are well managed. They are not huge places, only down fall my friend finds is they have to use gas bottles which is an added cost. But I do not know if that would be on all park sites. And I am sure that she pays a yearly fee to the management company.

Hopefully and fingers crossed she will be debt free in her retirement, and enjoying life to the full.