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Credit Reports - AP or Default - which is 'better'

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  • michael1983l
    michael1983l Posts: 1,916 Forumite
    Oooh that's news for me. Are you saying that APs disappear a year after being settled?

    HHx

    Nope that is not what he is saying.

    He is saying that the AP marker will disappear 6 years after the last payment and settle date.

    Whereas a default is put on your file straight away and no further mark is added. So if you took a year to settle the debt in both cases, a record would be shown for 1 more year of the debt with the AP marker than it would with the Default. Hence you might as well default before making an arrangement to pay.
  • Trajal
    Trajal Posts: 550 Forumite
    Debt-free and Proud!
    And if, like me, you take 3 years to pay off an AP, it will remain on your file for a further 3 years than if I had just let it default.

    Insanity.

    However, if you are still on good terms with the company for which you made an arrangement you can at times convince them that they didn't inform you of this when you made the arrangement.

    I appealled to both HSBC and Littlewoods in this regard and was rewarded with them both agreeing it was unfair and changing their reporting. Shows as all greens now, with no AP's.

    You do have to make sure that you stress to the company involved that you were not informed that this would be recorded on your credit file and you were simply trying to do the right thing by them. Not sure how others have gotten along trying to remove the APs but it worked for me.
    Debt free, moved, got new stuff for the new flat - got everything I wanted and need - now just saving.
  • pmhtuk
    pmhtuk Posts: 95 Forumite
    Nope that is not what he is saying.

    He is saying that the AP marker will disappear 6 years after the last payment and settle date.

    Yep, sorry if I didn't explain properly, thanks for clarifying.

    The example was that the AP marker would continue until the payment is completed and the debt is settled. So if that took 1 year in my example, that would mean the last ever marker would remain for 6 additional years, whereas if the account was defaulted at the start (and a seperate repayment option sorted) this would go by the first date of the default (so the earliest point possible) and then appear for 6 additional years as normal.

    So you are penalised for trying to fix or amend your credit issues, instead of just defaulting and then paying what you can through other routes.

    And as mentioned later in the post, if the AP markers (or the payment time) lasts a long time, so let's say 6 years in total of AP markers (NOT Default), this would then appear for an additional 6 years on your credit file, so 12 years would be damaged.

    Whereas if you default on the amount, the payment marker is instantly a DEFAULT and then will show for 6 years, regardless of if you arranged to pay under the same terms that a AP marker would attract.

    Either way, it's a stupid system, for those who are at least trying to solve their debts.
  • pmhtuk wrote: »
    Yep, sorry if I didn't explain properly, thanks for clarifying.

    The example was that the AP marker would continue until the payment is completed and the debt is settled. So if that took 1 year in my example, that would mean the last ever marker would remain for 6 additional years, whereas if the account was defaulted at the start (and a seperate repayment option sorted) this would go by the first date of the default (so the earliest point possible) and then appear for 6 additional years as normal.

    So you are penalised for trying to fix or amend your credit issues, instead of just defaulting and then paying what you can through other routes.

    And as mentioned later in the post, if the AP markers (or the payment time) lasts a long time, so let's say 6 years in total of AP markers (NOT Default), this would then appear for an additional 6 years on your credit file, so 12 years would be damaged.

    Whereas if you default on the amount, the payment marker is instantly a DEFAULT and then will show for 6 years, regardless of if you arranged to pay under the same terms that a AP marker would attract.

    Either way, it's a stupid system, for those who are at least trying to solve their debts.


    That was my original thought. Done for the creditors these things though!

    HHx
  • Tree_house
    Tree_house Posts: 25 Forumite
    I have lots of these APs on my credit file but I am not behind on my loan just paying extra every month, every month is green though, what should I do go back to the original amount and pay the extra over the phone every month, which I may forget or continue as I am and put a comment on my credit report. Please help
    Debt at LBM Aug 2012 £30,000 :eek: 1% at a time - Member # 178 = 100%
    Debt free date November 2015 :j :beer:
  • Stewart_78
    Stewart_78 Posts: 415 Forumite
    I have Barc / Cabot APing me at the moment and am in the process of complaining. I have taken responsibility for my debts and have made prompt arrangements with all other creditors who correctly defaulted me. Because Barclaycard refused to do so, my credit file is wrecked for 6 years from today and tomorrow and the next day until I clear the debt and then 6 years from then.

    If they will not play fair I will simply stop paying them anything and go for the enforcement route as this is a very old card account so I doubt they have a CCA. I will get a default at that point but at least then I have a target date for a clean file. At the moment I am looking at never having a clean file again.

    That, I think, is counter productive and should not be allowed. Even murderers get to repent and get a second chance.
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