Clearing outstanding debt,will it helpmy credit rating?????????????

jimm24

I have been stuggling since christmas to keep up with card/loan etc payment,as I have set myself up in business and have been paid sporadically.
I will be recieving a payment at the end of this month which should be enough to clear every outstanding debt I have,I was wondering if this would help my credit rating as just prior to christmas(when checked on expirian) I rated as 999/1000 so extremly credit worthy,I am aware that the missed payments etc will effect,but do firms look at this as a blip or will it effect me for the forseeable fututre?

taxi73

If you clear all your debt off in full then that will show on your credit file and if you need anymore it's better to have paid it off.

smilealot

Hi jimm24,

Have you received any defaults? If not, I don't think you need to worry too much, as you're previous excellent credit rating beforehand means that, even if it take a slight knock due to a few missing payments, it's likely to still be rating above fair. Of course, each lender tends to make their own individual judgement, so it's difficult to say (and I'm not an expert - I'm sure someone more knowledgeable will come along soon!).

Good luck,

smilealot :rolleyes2

jimm24

I haven't seen any defaults,but there is a long drawn out story of an ex wife and my mail going missing so I'm not sure?

smilealot

Hmm... I'd request a copy of your credit file via experian or equifax and then you can put your mind at rest.