Implications of a previous Arrangement to Pay

Fiddlestick

Hi folks,

Just wondering what the implications of a previous AP on my credit file might be when it comes to obtaining now borrowing.

I had a loan from RBS that started in July 2006.
There was then late payments in September, November and December 2006 followed by an Arrangement to Pay in January 2007.

After entering into the AP, the loan was paid on time each month until it was settled in March 2008.

The above is the only negative item on my credit file and since then I've obtained credit cards and loans successfully from other mainstream lenders.

I guess given the time that's passed I should not worry about it any more?

chanz4

AP's are as bad as defaults, although some dont view them so harsh

jonesMUFCforever

I agree - so 6 years from March 2008 = March 2014 before it will drop off and your credit report becomes 'clean' again.

jon142

I think some clarification is needed on AP. as someone who has AP markers on my credit file i can assure you they are not a 10th as bad as a Default.

I have 14 months of AP markers on a MBNA credit card then a partial settlement. ( AUG 2010 )

Despite this i have been approved this year for;

LLOYDS TSB 11.9% - £2000 LIMIT
ARGOS CARD
CAPITALONE PROGRESS
O2 Mobile Phone.

A default shows you RAN AWAY from your debts.

AP means you worked with your creditor to pay the money owed.

trust me, don't worry to much about it.

Fiddlestick

jonesMUFCforever wrote: »

I agree - so 6 years from March 2008 = March 2014 before it will drop off and your credit report becomes 'clean' again.

I'd like to save a substantial deposit for a mortgage, but not before 2014 at any rate.

It's odd that it's seen so harshly given the amount of new credit I've obtained (and paid off I'll add) since then.

CLAPTON

Fiddlestick wrote: »

I'd like to save a substantial deposit for a mortgage, but not before 2014 at any rate.

It's odd that it's seen so harshly given the amount of new credit I've obtained (and paid off I'll add) since then.

so

neither the lender nor the borrower have learnt any lessons.

Fiddlestick

CLAPTON wrote: »

so

neither the lender nor the borrower have learnt any lessons.

Hardly

I was a different person in 2006 with very different financial and personal circumstances.

Believe me when I say I've learned my lessons; my attitude to money and finances is vastly different to how it was 5 years ago.

Since that AP in 2006 I've never missed a single payment on any credit agreement and I'm currently overpaying my credit agreements each month so that I can get them cleared and start saving up a substantial deposit in order to obtain a mortgage, which I would also like to overpay and clear off as quickly as possible.

I learned some bad financial habits when I was younger but I'm glad that I was able to realise my mistakes and correct them whilst I'm still young enough and able to do so.

Some people have mortgages, children, expensive cars etc all paid for by credit and don't realise the problems that they are stacking up for the future.

Curr946

chanz4 wrote: »

AP's are as bad as defaults, although some dont view them so harsh

that make no sense pal... :cool:

ps, your also wrong...

boogiemaster

never-in-doubt

AP is on par with a default/ccj/6+ late payments in that lenders will not touch you until it has gone which is 6yrs after the registered date (usually 3yrs show on a/c history with CRA's)

A/P is a bad thing don't be fooled by the myth that lenders see it as a good sign, they do not!


Link to post https://forums.moneysavingexpert.com/discussion/1626051

chanz4

Curr946 wrote: »

that make no sense pal... :cool:

ps, your also wrong...

prove me wrong

Fiddlestick

Thanks for that link.

I'm still really confused, as the consensus hear seems to be that lenders shouldn't touch me until 6 years after the AP, yet I've not had any problems getting mainstream credit since then.

The linked thread seems to imply that it's not much of an issue now as whilst it's still there, lenders only tend to look at the last 36 month's history.