Advice needed re credit file please

joscorpio

Hiya

a split up with my husband 4.5 years ago and we sold the house 4 years ago. I paid off about £20k of debts with this...mostly due to the help / advice I found on here about asking companies to take a full and final settlement.

4 years down the line, I now have 2 credit cards left that I haven't paid for about 2 years (I can only just survive as a full time working single parent). The debt collection agencies have been sending me letters on and off over the last 2 years.

My question is this...

I have just found out I am getting a small sum of money in the next couple of months. Should I ask for F&F settlements on these 2 credit cards or pay them off in full? I assume my 6 years to clear my credit file starts when I've paid these 2 off? Or would it clear straight away if I pay them off in full?

If I pay them off in full I'll have about £100 left over, if I ask if they'll do 75% I'll have about £600 left which would be welcomed in my current circumstance.

When does the "6 year" thing start from...when will my credit file be clear? I'd love to take out a mortgage eventually (would be able to afford it when everything's paid off) but obviously want a good credit file check

Thanks,

awayinchina

The 6 years starts from the moment payments and communication breaks down on the debt or if paid/settled the date the default goes on the debt, that is how I understand things.

Although, someone else may give more accurate reading of the rules. if you are intending settling the accounts it might be worth your while www.equifax.co.uk and get your credit file (DO NOT GET THE CREDIT SCORE WASTE OF MONEY).
this will give you the relevant information in regards when the accounts where marked as default.

hope that helps

fermi

joscorpio wrote: »

When does the "6 year" thing start from...when will my credit file be clear?

On a defaulted account, 6 years from the recorded default date.

If not defaulted, then 6 years from the settlement date.

In your case, as these are defaulted, the former.

taffy056

If you are to offer them a F&F settlement figures, start real low, maybe 15%-20% of the outstanding balance. Also make sure you get everything in writing, don't accept anything over the phone.

Here is a link to national debt line with sample letters you can use
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

jon557

It will be on your record for 6 years. HOWEVER, you can give them a call and query "What if I was able to settle my debt fully with you in the next 5 days? Will you clear my default in return for immediate payment?" - It can't hurt to at least ask, if they agree, get it in writting if you can. They can only say no. But they have the ability to alter their impacts on your credit files, i.e. if it was their mistake or whatever. I have had the odd thing removed before.

Give it a shot.

taffy056

Sorry wouldn't go that as they will demand the full payment then, and you would have just admitted in writing that you have the funds to clear the debt in full. So they wouldn't then take a F&F payment if they refuse to remove the defaults. I still say the best course of action is my previous post.

jon557

Not admitting that you had the money, just saying what if. They don't need to know details, i.e. you could be borrowing from family.