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How long would it be until my credit rating improves?
Bunnyhop
Posts: 162 Forumite
Totally unexpectedly a family member has said they will help me out with my debts and I just wondered if anyone could give me an idea on how long it would be until I was back on the straight and narrow.
I have two defaults, the most recent being January 2005 and I understand that those will take 6 years to drop off my file. If these were satisfied it wouldn't change that date would it? Or would the account stay on my report looking bad for 6 years after the date it was settled?
Cahoot, unfortunately, never issued me a default and instead are giving me a "6" rating every month on my report due to the debt management plan. I'm assuming therefore that that would stay on my file 6 years from the date of it being satisfied.
Does it make any difference to my credit rating if the debts are paid off in full or if they are done by offering a smaller payment in full and final settlement? Does one involve things improving faster than the other?
Thanks for any help you can offer!
I have two defaults, the most recent being January 2005 and I understand that those will take 6 years to drop off my file. If these were satisfied it wouldn't change that date would it? Or would the account stay on my report looking bad for 6 years after the date it was settled?
Cahoot, unfortunately, never issued me a default and instead are giving me a "6" rating every month on my report due to the debt management plan. I'm assuming therefore that that would stay on my file 6 years from the date of it being satisfied.
Does it make any difference to my credit rating if the debts are paid off in full or if they are done by offering a smaller payment in full and final settlement? Does one involve things improving faster than the other?
Thanks for any help you can offer!
0
Comments
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The defaults will stay on your file no matter whether the accounts have been settled or not for 6 years from date of default, ie your last one expiring in January 2011. I would guess that your credit file will look better if debts are marked as settled/satisfied. If they are marked as partially settled/satisfied then surely this will alert any potential Lender that you've had problems in the recent past. As for the Cahoot situation, I've not come across that one before, but it does look as if that last "6" will remain on file for 6 years from the debt being settled/satisfied.Donedoingdebt Lightbulb moment January 2000. Debt at highest approx £102,000. Debt now (October 2009 - absolutely fork all!!!):beer:
CSA case closed on 02/09/10 :beer::beer:0 -
Hi
the 6 should mean that you have missed 6 payments or that you are still 6 payments behind. Thats what mine used to show. I only had a few missed paments on three seperate accounts which happened when I lost a job, It has taken 3 years for me to be accepted for credit again, whicgh is a relief as I can now transfer my cards to 0% I couldn't get any credit before not even bad credit - credit cards
NatDMP 2021-2024: £30,668 £0 🥳
Current debt: £7823.62 7720.52 7417.940
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