Default/Partially Settled/Settled???

toughgreenmonkey

Ok so I have a default on an old account and I have just rang up to discuss. They have offered me a settlement figure which will then appear on my credit file as 'partially settled'

I am aware that regardless the default will remain on my credit file for 6 years but..... How does 'partially settled' affect my credit scoring? Surely it is better than defaulted? How does it compare to a 'settled' account? Obviously 'settled' is best but 'partially settled' a good avenue also?

Thank you

Jason_Bourne_2

Once you've defaulted it won't make much difference. Was the offer from the original company or has the debt been sold on? What percentage of the debt are the accepting?

The sooner you get the balance zero the better, partially or fully settled ago cares.

Thrugelmir

Partially settled will be noted on your file. So depends on the underwriting criteria of a particular lender as to on what basis this is acceptable, and the time period that it may impact.

toughgreenmonkey

75% of the debt and it's gone to a third party so will be through them, no option to pay direct

toughgreenmonkey

I have it in writing that they cannot and will not chase for the remaining balance also

Buzby

If a full and final settlement, then they cannot pursue you for the balance, but as thereby weren't expecting to get anything like that in the first place, why should they?

Since most vettings are automated, a partially settled and settled are treated as outstanding (minus points), unless a manual check is undertaken, which may (only may) give you a few extra Brownie points, but hardly worth the bother.

My honest view is if the original creditor cannot be bothered to take the money from you you have no moral obligation to deal with a third party not if your own choosing or selection. Let them swivel, it's not going to get any better if you do give them money.

toughgreenmonkey

I would happily let then swivel but I would like a mortgage at some point so need to get my finances in some kind of order sooner rather than later in order to at least stand a chance

sirwiggum

You'll be waiting the 6 years until the default drops off before you'll even be considered for a mortgage.

Lenders wont really care if it is settled / partially settled / open.

When the default drops off, so does the account, so the status is irrelevant.

Jason_Bourne_2

sirwiggum wrote: »

You'll be waiting the 6 years until the default drops off before you'll even be considered for a mortgage.

QUOTE]

Not true, high street lenders won't look at a mortgage but other will depending on size of deposit.


Give it about a year after they are settled and take the files to a broker.

sirwiggum

Jason_Bourne wrote: »

sirwiggum wrote: »

You'll be waiting the 6 years until the default drops off before you'll even be considered for a mortgage.

Not true, high street lenders won't look at a mortgage but other will depending on size of deposit.


Give it about a year after they are settled and take the files to a broker.

I'm going by what the Mortgage advisor told me a couple of years ago.

Although my settlement dates were about a year off my default removal dates anyway.
(And I don't have a large deposit either, which is true. I used what I could to pay off the DMP earlier than scheduled)

Thrugelmir

sirwiggum wrote: »

I'm going by what the Mortgage advisor told me a couple of years ago.

Times have changed when it comes to mortgage lending.