credit card full and final

leftinamess

Hi,


I was looking for a bit of advice, I am just about to pay of my last credit card which is £1500 which my ex wife had some agreement to pay £22 per month which is showing on my credit file as a missed payment every month.

It has deflated since 2007 and I want to know what’s best to do for my credit rating. Would it to be paying the correct amount every month so it shows as green or to pay it all off in a full and final settlement?


Thanks

leftinamess

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Tixy

Now there is a default on file then really paying the correct amount each month from now on won't make much difference - the default would still show for the next couple of years and will still show as outstanding.

Arguably best for your credit rating is to pay off the full amount now and have it marked as a satisfied default for the next year or so. In practice it will probably not make much difference if its down on file as partially settled (i.e neither will make your file look much better than it currently does) - so you could try negotiating a reduced full & final settlement.

leftinamess

Tixy wrote: »

Now there is a default on file then really paying the correct amount each month from now on won't make much difference - the default would still show for the next couple of years and will still show as outstanding.

Arguably best for your credit rating is to pay off the full amount now and have it marked as a satisfied default for the next year or so. In practice it will probably not make much difference if its down on file as partially settled (i.e neither will make your file look much better than it currently does) - so you could try negotiating a reduced full & final settlement.

Thanks tixy your the best!

Is there such a company that i could go to and get advice on my credit history and look into the best way to fix it?

Tixy

Not that I know of, or rather not one you should consider - there are some supposed credit repair companies out there but they are never worth paying for, they can't do anything that you can't do yourself. Probably best advice would be to keep working through your report and asking questions on here as they come up and someone should be able to help.

Basically once you have defaults or CCJs on your file then the only thing that will make a big difference is time. A default or a CCJ stay on your file for 6years from the date of issue.

Have you had a read of this article - Credit Rating: How it works and how to improve it

and if you don't have any open active accounts on file this one - 'Bad Credit' Credit Cards: Use them to rebuild credit rating