Capquest default - when does this clear?

Kayleighpea

Hi all,

I've read through threads to try and get the answer I'm after but I'm not sure anyone has the same situation as me!

Background: At Uni I had a Natwest bank account (among others!) that had a £1000 overdraft which I used up. When I finished Uni and moved back home Natwest had sold the debt to Capquest and they were chasing payment. I had forgotten about this so sent a prove it letter. They then did prove it so I arranged a payment plan of £10 a month with them.

The default amount was £1130 and the current balance is £760 and now 3 years exactly have gone by. I will have cleared another credit card in a few months time leaving me with an extra £200 a month so the first thing I want to do is settle with Capquest. (Although this is my smallest debt, everything else is up to date)

My question really is when will this default come off my credit report and my score look better?

Account opened: Jul 2007
Default date: Jul 2010
Hope to pay off in full Feb/Mar 2014

I'm just not sure if it clears up and all looks good after it has been settled or 6 years after default date?

Thanks in advance!

fermi

A settled default looks better than an unsettled one, but it is 6 years fro the default date that everything is removed from your report.

Tixy

It will be removed July 2016.

If its settled before then it will remain on your file but show as a settled default rather than an unpaid one. Which looks a bit better to potential lenders.

Kayleighpea

Thank you both!