Will settling an old default improve credit rating

jnrjnrjnr

Hi there,

I've recently got access to my experian credit report and the score is good, close to excellent.

There is however one defaulted debt, I think from Uni days.

In 11 months the debt will be 6 years old.

When applying for a credit card today I was declined due to information held on my Experian report, so presumably it is this default.

I don't really need credit this year but I was planning to apply for a mortgage next year once I have my deposit together and I'm trying to do what I can to show good creditworthiness. I have no debt or credit otherwise so probably lack financial history.

If I settle the debt in part/full will it improve my credit rating and be removed from my file? Or should I just wait for it to drop off my file at the 6 year point?

Thanks!

stephane_2

I would just wait for it to drop off.....paying it will not remove the default anyway....

fermi

Settling would have only a small effect before it drops off. After it has dropped of, it would have no effect at all.

chanz4

However on the otherside, they could go to court for a ccj in the 11 months....