Paying off a credit card that's over its limit

EvilDes

Hello to all, I was wondering if someone could offer me some advice.

Basically, in my youth I've been stupid with the credit card I had, and ignored it. Stupid, I know, but now I'm trying to sort my life and finances out having split with my fiance recently.

Basically, I have an old credit card with my bank, Lloyds TSB. The limit on this card was £1000, to which it is now £2500 thanks to late payments, and charges throughout. Now I KNOW how stupid this was, and I'm paying the price for it now, but I really have learnt from my mistakes and am making amends and paying off my debts.

In short, I am currently able to pay the full balance off and clear this nasty debt. Now, I know that because of my idiocy, I have a poor credit score. However, it's the only thing that's dragging me down, everything else has been sorted.

My question to you knowledgeable people is: should I pay the full amount off in full, and if so, how will that affect my credit score? Or should I leave a certain amount on there and pay that off monthly to show my ability to pay a debt?

I'm in a much better financial position now, and rather than blowing it, I want to sort myself out.

Any advice on what I should do is greatly received, and I thank you in advance for any guidance given! :beer:

Thanks,
Des

Tixy

What is the current situation with the card on your credit files? has a default been issued and registered on your file? presumably the account has been closed by the bank?

If it has been defaulted, which seems likely, then the best thing to do is clear it all off as soon as you can and ensure that the default is shown as satisfied on your credit files. It will still have a serious impact on your credit file until the default drops off (6years from the date of original default) but at least it will be clear to anyone looking at your file that the money is no londer owed.

PhenoM

What you need to find out first, is if the card is still active. You'll have to speak for LTSB for that.

EvilDes

It isn't defaulted, no. It just states the credit card limit, and what the balance is. There's a lot of zeros, and a few ones on the status history section. (000010010100)

Not good I know

I do actually have a default from 3/8/05, but am I right in thinking this will disappear after 6 years, which will be this August? It's only for £150, so if it's going to cause problems, I will pay that off. But my main concern is for the credit card.

I'm not sure if the card is active, it got cut up a long time ago, and I have now asked for it to be closed.

YorkshireBoy

EvilDes wrote: »

I have now asked for it to be closed.

Possibly a bad move. This means the poor account history will reside on your file for 2-3 years longer than it would have done had you kept it active.

EvilDes

Righteo lol I had asked for that a while back and they never done anything. And so far there's no change either as I asked at the weekend, and I plan to pay it off this week. So might get lucky.

m00m00

the default will drop off in august whether you pay it or not

it's up to you whether you think it's worth having it marked as satisfied for 2 months