Credit file question

chaz2489

Hi all,

Can someone please tell me what happens if you have missed a few payments on a catalogue account but then pay the full balance off?

Does it then show up on your credit report as settled or will the fact it had a few missed payments stay on the for a few years?

Thanks you

You-kip

Few missed payments that will be seen for 6 years.

chaz2489

Thanks you-kip.

What will the file then say once the balance has been paid?

Thanks

fermi

Did they record a default? Or is the account just show 1,2,3 etc late payment markers? Is the account still open/active/usable, or did they close it?

chaz2489

I'm not certain as I am asking for my sister, what I do know is she opened a Littlewoods account in Oct/Nov 2011, she thought she had set up a DD but apparently she did not. The first payment she made was 3 weeks ago and the debt was passed to Lowell she thinks, around may time 2012. She is clearing the remaining balance next week.

I believe the total debt was only for £180. She's worried because her and her partner are looking for a house and she's concerned she won't get a mortgage. Other than this catalogue she only has her contract phone which is all up to date.

Thank you

fermi

Get her to check her credit file then to see what has been put on it.

Saying that, if the debt has been passed to Lowells (debt collector) then it is very likely that a default has been placed on her credit file. If they have, then that stays for 6 years from the recorded default date, whether you settle it or not. It would just be marked as a settled default. A default would be a significant negative factor/hurdle in getting a mortgage.