Default, debt write off request & credit score

dh010010

Hi all )

I have a default on my file which is 5 years old not and unsatisfied, basically I run in to troubles many years ago and have been paying £1 towards the debt ever since.

My question is..... the default will drop off of my credit report in just under a year, and I still owe £2500. If I put forward an offer of final payment (i.e. £500) and it is accepted (keep your fingers crossed for me on that one) will this affect my credit score again?

In just under a year the default will drop off meaning my credit rating will increase, if I am successful and the debt is written off will this upset that by adding another bad marker from now?

Thanks in advance for you help.

You-kip

Your credit score won't improve as there's no such thing but what will improve is your credit worthiness providing the rest of your credit files show a good history of handling credit.

izools

As above, clearing the debt will improve your creditworthiness. An outstanding default even if 5 years and 11 months old is a serious negative but a settled default that is quite old (over three years) isn't so bad especially if you have more recent impeccable history.

You don't have a credit "Score"; the numbers credit reference agencies sell you aren't visible to lenders - lenders make up their own decision based on the raw data in your credit file using their own scoresheet - and as the criteria lenders use varies depending on who you're applying to and indeed what you're applying for, your level of creditworthiness, or "Chance of success" varies depending on who you're applying to and for what.

There's no way to predict your chances of success despite what the likes of Credit Expert, Noddle, and Equifax would like you to believe.

In answer to your other query they should simply mark the account as "Partially settled" with a £NIL balance - this will indeed have a positive effect on your creditworthiness.

The default date will remain the same and therefore the default will still drop off your credit file at the same time as it would if you didn't settle the debt.

Best of luck getting your full and final offer accepted - and please don't pay a penny until you have their acceptance of your offer in writing.

dh010010

Thanks izools.... Very informative, clear and dead easy to understand :beer:

I will make sure I get their acceptance in writing (learnt that lesson a long time ago) and hopefully get this all raped up.

Thanks once again for the information.