Credit score advice...

Ozzy1968

Hello, looking to change our life round and to keep it short, we have put our house on the market. We hope to come out with around £30k. We owe around £40k. We are looking to rent and rebuild our credit score to be able to get a new mortgage in the future.

My question is, would we be better to say pay off £30k off in full and start to pay the other £10k over a period of time thus clearing all in full? Would this benefit our credit score in the long run or should we go for settlement offers on all of them, is the damage already done? Any advice would be appreciated.

tinkerbell28

Your credit score doesn't matter really. It is the data. So if you've already defaulted then the damage is done.

With 30k, I'd say go for a full and final settlement if you can.

Thrugelmir

Full and final settlement may well restrict your options. If the same financial institutions are approached for a mortgage.

Given the ever increasing tightening of underwriting criteria. Full repayment of debt is always the best option if at all possible.

At least then you start with a clean slate with which to move forward.

ValHaller

If you have already defaulted, go for full and final settlements, the damage is already done.

For those you have not defaulted on, settle in full for least damage.