Clearing Default Accounts

GeorgeMcC_2

Hi everyone this is my very first post

I am trying to clean up my credit rating and have three default accounts on there that i need to get off .Can i simply pay these accounts and they will be taken off or is it not that simple.

I also fancy my chances of offering the companies involved a lesser amount to clear the debt would this if accepted by them also clear the account from my record.

Any advice on this would be most helpful

Thanks:j

~Beanie~

Defaults will stay on your credit file for 6 years, whether you pay them off or not.

matttye

In addition to what ~Beanie~ said, if you make an offer to pay at a reduced amount and it's accepted, the debt will show on your credit report as "Satisfied." If you pay in full it will show as "Settled."

I don't think they make a great deal of difference to lenders, but both will be of benefit rather than an unpaid debt.

downnotout

Offering F+F will all depend on how old the debt is, who owns the debt (i.e. the original creditor, or a DCA). Generally the older the debt is, the better chance of getting a F+F accepted (although the process will involve haggling, so start low) if anything is over 6 years old you are looking at going in to statute barred territory, and then it becomes unenforceable, you still owe the money but they cant force you to pay. If it is with the original creditor then they will in most cases decline a F+F settlement.

GeorgeMcC_2

Cheers for the replies
It sucks that they stay on there for 6 years
If i paid them and they showed on my credit file as settled or satisfied will the fact that they are still defaults adversely affect my rating.
Do you think that settled defaults will stop me getting credit basically.

GeorgeMcC_2

downnotout wrote: »

Offering F+F will all depend on how old the debt is, who owns the debt (i.e. the original creditor, or a DCA). Generally the older the debt is, the better chance of getting a F+F accepted (although the process will involve haggling, so start low) if anything is over 6 years old you are looking at going in to statute barred territory, and then it becomes unenforceable, you still owe the money but they cant force you to pay. If it is with the original creditor then they will in most cases decline a F+F settlement.

1 of the defaults is with a dca and i got a letter from them today ironically offering me a chance to pay half and close the debt , the other is two amounts still listed as being with original lender both are about two years old

downnotout

will they affect your credit rating? - yes
will they stop your from getting credit? - not strictly no, but you will be in the subprime market, you most likely not get mainstream credit. For example, you will most likely not get a credit card from your bank, but companies like Vanquis "may" accept you, at the cost of far higher APRs.
In credit terms, time is a healer, short term you will struggle, long term you might start to get somewhere.

moohound

My original lenders accepted full and finals after 9 months in a DMP.

The % varied enormously though, one took 38% straight away most of the others wanted 75 -85%

matttye

GeorgeMcC wrote: »

Cheers for the replies
It sucks that they stay on there for 6 years
If i paid them and they showed on my credit file as settled or satisfied will the fact that they are still defaults adversely affect my rating.
Do you think that settled defaults will stop me getting credit basically.

An Experian representative who posts on these forums said that defaults tend to have less of an effect with age, especially if you've handled credit well since getting the default.

In my experience old defaults still do cause problems even when you've handled credit well, but your situation will perhaps not be so bad as when the defaults are still fresh.

GeorgeMcC_2

Both are from 2011 i have two amounts from one and one on another i also wonder if i paid the debts up in instalments would it show i was paying them or would it only update when it was cleared.

matttye

GeorgeMcC wrote: »

Both are from 2011 i have two amounts from one and one on another i also wonder if i paid the debts up in instalments would it show i was paying them or would it only update when it was cleared.

The account will still be in default but the balance updates every month.