Settled Account on file - Never defaulted.

Amygdala

I'm in need of assistance.

I have several Settled Accounts on my credit report. I've been trying to get them removed - As I believe they have been wrongfully placed on my report.

One is with a payday loan company - I have contacted them and they have told me I have never defaulted with them - I paid the money in time and didn't break any polices etc she stated: "I can confirm with yourself that the loan was deposited into your account on the 15/08/2011 and was cleared in full on 29/09/2011 this should not be registered as a default on your Credit file, this should be marked settled." What does that even mean? Surely, if something is marked as settled on my credit report, that means it was originally a defaulted account? :mad:
After several back and forths she asked that I send her a copy of my report, and asked is my credit report showing as a Settled Account with a default. :wall:

I have spoken to Experian and they said "This account is showing as settled with out any late payments or defaults. We keep settled accounts on your credit report for six years from the date of settlement.". I was always aware that a Settled Account was a defaulted account which has since been paid off- Is this the case?

Both parties have told me I was never under default yet I have a entry on my credit report which will be looked upon in a bad light to future insurers and may affect future loans.

Is my terminology off? Maybe I don't understand what a settled account actually is, if I was never default why would it stay on my account for 6 years if I did everything correctly?
If I am wrong, please explain in depth, I cannot find much information on the internet. If I am wrong and you can have a settled account without first defaulting is it still viewed bad to future insurers.

I'm at a lost cause here, please help! :huh:

nidO

Settled just means you paid it off. Settled and Defaulted/Default Settled are entirely different, and it is fully correct for an account/loan/whatever that you've fully paid off and closed to be marked as Settled.

A credit file is not just a display of bad things but is a history of all your credit, an account being marked as settled is a good thing as it is showing other lenders that you have previously had credit and paid what you owe with no issues.

Gordon_Hose

I have lots of non-defaulted accounts on my files that are "Settled", this is perfectly correct. Just means they've been paid off and the accounts closed, or "settled".

Amygdala

nidO wrote: »

Settled just means you paid it off. Settled and Defaulted/Default Settled are entirely different, and it is fully correct for an account/loan/whatever that you've fully paid off and closed to be marked as Settled.

A credit file is not just a display of bad things but is a history of all your credit, an account being marked as settled is a good thing as it is showing other lenders that you have previously had credit and paid what you owe with no issues.

Thank you both, I thought I may have been off with the terminology. That is a breath of fresh air to hear.
Would it be clearly marked if the entry on my credit report was a settled account or a default/defaulted settled account.

Again, many thanks! I really appreciate it.

Tixy

Would it be clearly marked if the entry on my credit report was a settled account or a default/defaulted settled account.

Yes, it would be clear to a potential lender.

An account that has defaulted will show a field showing date of default but show the current status as default - satisfied or default - settled.

An account without would not have that field and would show as current status settled.

fermi

A default would be clearly marked, yes. It would have a "default date", default status history, and a satisfaction date.

See the difference in the example entries in Experian's example report.

http://www.experian.co.uk/downloads/consumer/mock-report.pdf

Experian_company_representative

Defaults and court judgments are marked 'satisfied' when cleared. Only non-defaults are marked settled. Successfully closed and well-managed credit accounts are likely to help your credit rating.

James