credit card defaults on credit file

lutonloyal

Hi - Newbie to the forum

I have 3 defaults on my credit file from credit cards
I am now in a better financial position so I can pay off the outstanding amounts.

Once I do this will the defaults be removed from my credit file or do they still stay there until the six years is up

Thanking you in advance

BugsyBrowne

lutonloyal wrote: »

Hi - Newbie to the forum

I have 3 defaults on my credit file from credit cards
I am now in a better financial position so I can pay off the outstanding amounts.

Once I do this will the defaults be removed from my credit file or do they still stay there until the six years is up

Thanking you in advance

6 years from the day they went on the file wether they're paid or not.

It will just say satisfied.

Tixy

They stay on for 6 years from the default date. But once paid will show as satisfied defaults rather than outstanding ones.

lutonloyal

Thanks
Does the debt saying satisfied improve credit rating?

Tixy

It should improve your chance of being able to get some credit (e.g. something like a subprime card), but you will still likely struggle to get any mainstream credit.

lutonloyal

What is a Subprime card
next month on 28/02/2013 one of the defaults will have reached the six years - Will this be removed from my file even if it has not been paid?

once again - many thanks in advance

Tixy

Subprime card = A credit card from a lender other than the main banks. They have higher APRs, and lower limits. But they can help people build up a credit history and mean people who cannot get other credit have the benefit of the added protection from buying via a credit card.

They are not a good idea to be used to pay things over a long period of time, as the interest rates can be very high.
Examples include Vanquis, aqua and capital one.
http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

lutonloyal

Thanks Tixy
I actually have an Aqua and a capitol one card which i pay in full each month to avoid the high interest rate charges - but the defaults i refer too on my credit file sit there and the creditors are not chasing for them - I find that a bit strange really - is this a common thing?

forgotmyname

Not chasing for how long and who are they?

How long has it been since you made a payment? Not been passed to debt collectors have they?

shortcrust

lutonloyal wrote: »

Thanks Tixy
I actually have an Aqua and a capitol one card which i pay in full each month to avoid the high interest rate charges - but the defaults i refer too on my credit file sit there and the creditors are not chasing for them - I find that a bit strange really - is this a common thing?

I know quite a few people who were never pursued for credit card debts after the first few letters, and others who just ignored debt collectors' letters until the debts were statute barred. All going back a few years though so things might be different now. Many an argument is had about it after the wine's been flowing!