Is it reall worth settling a Default???

butterfinger

Hi Guys,

I recently checked my credit report to find that i have had 2 defaults from 4 years ago, due to unforeseen circumstances i had to move back home to Barbados to help with some family issues, however i left an overdraft of £200 and also an unpaid Scottish Power bill of £351! Which are now defaults on my credit report, although i really have no issue settling these defaults is it really worth doing this as they will be wiped off my credit file in 2 years time? If i settle both accounts in full will it actually improve my credit score? I do have a great credit history besides these two defaults, ive never missed a payment and all my credit accounts are in line.

I have been told thats its not worth paying them off if they are already defaults by a few people because whether they are settled or not lenders will still see it as a default regardless?

Any advise would be greatly appreciated.

Cheers:beer:

EDIT:

As stated,

I HAVE NO ISSUE PAYING THEM WHAT I OWE, im not that sort of person.

my main question is does it improve your credit rating? do lenders still grudge it regardless of whether its been fully settled or not?

Honestly not asking anyone for their morals on the situation, just if you know anything with regards to the credit file reflection?

southernbelle

If you owe the money you should pay the bills.

McKneff

Of course it;s worth it.
You owe the money, you should pay it. If you have the money to do so, then it would be immoral not to.

You could contact them and ask for a full and final settlement figure,

It depends on what kind of person you are.

I can only say it has got to improve your credit rating somewhat, I cant see any reason why it shouldnt

chanz4

2 years for a ccj to come....worth the risk?

butterfinger

chanz4 wrote: »

2 years for a ccj to come....worth the risk?

Well said thank you!! :T

suburbanwifey

butterfinger wrote: »

Hi Guys,

I recently checked my credit report to find that i have had 2 defaults from 4 years ago, due to unforeseen circumstances i had to move back home to Barbados to help with some family issues, however i left an overdraft of £200 and also an unpaid Scottish Power bill of £351! Which are now defaults on my credit report, although i really have no issue settling these defaults is it really worth doing this as they will be wiped off my credit file in 2 years time? If i settle both accounts in full will it actually improve my credit score? I do have a great credit history besides these two defaults, ive never missed a payment and all my credit accounts are in line.

I have been told thats its not worth paying them off if they are already defaults by a few people because whether they are settled or not lenders will still see it as a default regardless?

Any advise would be greatly appreciated.

Cheers:beer:

EDIT:

As stated,

I HAVE NO ISSUE PAYING THEM WHAT I OWE, im not that sort of person.

my main question is does it improve your credit rating? do lenders still grudge it regardless of whether its been fully settled or not?

Honestly not asking anyone for their morals on the situation, just if you know anything with regards to the credit file reflection?

This was the question that was asked, so I will answer as everyone seems more interested in morals. Its not about the moral issue, its about answering the questions peeps!

To the poster, No, its not worth it. The defaults will stay on your credit file regardless of paying them off. If companies removed defaults if they were settled, maybe more would see a point. You won't get a CCJ 4 years into it, if they were going to do that they would have done it well before now. If you don't want to pay or can't pay, leave it.

lxpeanut

If your not paying they will show as debts you've fallen behind on on your report. The default might fall off but that will still be there.

fermi

lxpeanut wrote: »

If your not paying they will show as debts you've fallen behind on on your report. The default might fall off but that will still be there.

Not true. All details of a defaulted account are removed from your credit report 6 years after the default.

Absolute nothing about the account remains. Not the default, not the payment history/late payments. Nothing.

The only way the debt can ever impact or appear on your credit report again is via a CCJ.

javorb

what happens once default removed ,i am in dmp and still paying but most defaults come off in jan ,do i still pay

fermi

javorb wrote: »

what happens once default removed ,i am in dmp and still paying but most defaults come off in jan ,do i still pay

Yes. They could still take you to court if you stopped. If they did that would screw your credit file for another 6 years.

earthmother

Just a quick note on this - my husband had a default, less than £10, with a book club, that was literally months off dropping off his report - and until he got a letter from the company stating it had been paid, he wasn't allowed anywhere near our mortgage that we were trying to get at the time - all for a tenner and 'forgetting' to update an address once when he was young and stupid.

So yes, it's worth paying - 2 years is a long time - anything could happen.