Benefit to paying default on credit file

b1gdeano

Hi,

I hope someone could clarify for me the benefit of paying off a default once it has been added to the credit file.

I have been planning on paying off some defaults on my file, either in full or with full and final settlements.

After reading a few sites, I am unsure if this will even benefit my credit rating, as the default still exists until the 6 years is up, is this true?

If so why pay and not just wait the 6 years then? (apart from the moral aspect of owing the money)

Basically I could use that money on other things if it isnt going to help my rating improve.

Any advice appreciated.

Thanks

KingElvis

The default will be marked as satisfied if you pay up completely and part satisfied if you come to an agreement.

This looks way better on your credit history than unsatisifed...you made the effort to pay etc instead of sloping out of it.

Hope that helps.

b1gdeano

So it does improve things?

I had began to get the impression that it didnt do any good, so why not just wait for them to drop off after the 6 year period!

wayne99

as far as i was aware a default has the same effect if settled or not, a default is a default.

for more clarity ask the master of defaults never-in-doubt or pop over to his forum and ask him

http://forums.all-about-debt.co.uk/

KingElvis

Yeah after a few years it will help I think. Others may know better.

Think of it as a lender, if you see that someone made the effort to pay back (at least something) then that's better than someone who didn't..simple as.

After six years they drop off regardless so then it makes no more difference than a gnats whisker.