Settling a default credit arrangement?

a_quiet_man

Hi folks,

As of next week I will be in a position to settle an outstanding £323 credit arrangement that was taken out due to a loan going to defualt with RBS. :j
I spoke to the advisors at the bank who seemed to think that settling this in full would greatly enhance my current credit file - something that is definitely problematic in me achieving credit on a better deal that I am currently on.

Could anyone provide some words that quantify this or are the bank given me a flase sense of optimism with that statement? If it's the latter, should I perhaps consider a Debt Management Plan? I received a call this morning from Advanced Debt Management (ADS) who seemed to think they could help. Are they reputable?

If RBS are not telling the full story, could anyone help as to how long in future a fully settled default might impact on my credit score?

Lot of Qs there but hope someone can clarify. Thanks!

p00pieb0tt0m

I don't know about the loan thing but as for DMP's I would always advise seeking out an organisation which will not charge you for their services.
Therefore look into National debtline - https://www.nationaldebtline.co.uk and Consumer Credit Counselling Service - https://www.cccs.co.uk
Both are charities and will ensure all the money you pay to them goes to your creditors. They do not take a slice for themselves.

a_quiet_man

Thanks.

ADS did state that they work on a 15% monthly charge which was not made particularly clear. I will look into those other organisations first I think.

file_wizzard

a_quiet_man wrote: »

If RBS are not telling the full story, could anyone help as to how long in future a fully settled default might impact on my credit score?

A settled default will remain on your file for 6 years from the date of original default, the reduction of impact between an "outstanding" and "satisfied" default is exceptionally minimal, most scoring processes will still consider you to be a high risk owing to the simple fact that you defaulted, regardless of whether that default is now satisfied.

RBS are also likely to tell you other wise to encourage you to pay up ASAP!!