effect on my credit rating

bbelt

Hi All

i have a hp agreement which i missed a few payments on but im working hard to pay to back.

im over paying by about £50 a month, but can afford to pay more (at a push) in order to have it paid on time (ie by the end of the original agreement had it been adhered to)

woudl this be better for my credit rating?

im trying to improve it

BigCraigJohn

Make sure there no arrears as this will go against you. The a settled debt would show as a positive.

bbelt

so i would be better off paying the extra to ensure i pay it off within the original agreed time limit?

DarkConvict

Yes, the longer you are in arrears will most likely show as late/missed payments.

If you miss a payment you should make it up and pay the regular payment too the following month to clear any owed arrears.

bbelt

i cant manage my regulars on top of my missed.

thanks for your advice though, i will pay it all over the next six months, which is what is left of the term

Hannah_10

Paying it off in six months and catching up your arrears is still an improvement because it leads to the debt going on for a shorter time and thus less arrears notices, finishing earlier (and so falling off your file earlier when they eventually reach the magic age).