Defaulted bank account on credit file

buzzb_2

I have a defaulted bank account from about two years ago which has a balance of £286

I recently obtained my credit report and its listed as a defaulted account, my question is, if i pay off the outstanding amount in full sraight away, what will be displayed on my credit report, will it stay defaulted for 6 years? or will it disappear?

I am trying to organize my finances as i am only 20 and dont want a life of debt lol

I also have an outstanding balance of £600 with a littewoods account, it has been passed on to a debt collection agency, and i have been ignoring the letters thinking the debt will go away, however i need to face reality and get back on track.

I am currently unemployed, however i have two job interviews soon for full time jobs, unfortunatly their only mininum wage however its better than benefits.

Any help or advice in my suituation would be very appreticated

pcombo

I would wait to see if you get the job (S). Before trying to setup a payment plan or pay anything off.

buzzb_2

Do you know if the defaulted bank account would be wiped off my credit report once paid off?

coolesticeking

Afraid not, it will just say settled once it's paid off and remain for 6 years with the amount that you defaulted at.

If you only have the one default you 'may' be able to still get credit but not at rates you desire if at all till this default removes itself after 6 years.

pmduk

If you have the money, then pay it off, but as someone has already said, don't make arrangements on the basis of jobs/money you haven't yet got.