How will a temporary Arrangement to Pay (AP) affect my credit rating?

Stabilo_Boss

Hi

Back in 2008 I entered into an Arrangement to Pay agreement with Barclaycard as for reasons I won't bother explaining I couldn't afford the monthly payments. This AR went on until 2010 when I started making higher payments and came off the AR. I still have the card and have green ticks every month since then. I didn't realise that an AR would/could adversely affect my credit rating but I have read a lot about this on this forum and elsewhere. I also have a CCJ dropping off my file soon and this will leave me with a perfect credit history for the last several years and no defaults or CCJ's. Most of the stuff on here about AR refer to the problems after the 'settled' date but mine were never settled - I just re started the normal payments. Does this make any difference or will the fact that the AR are still listed still negatively impact my credit rating until 2016?

Thanks for any advice

CherlokHomes

Stabilo_Boss wrote: »

Hi

Back in 2008 I entered into an Arrangement to Pay agreement with Barclaycard as for reasons I won't bother explaining I couldn't afford the monthly payments. This AR went on until 2010 when I started making higher payments and came off the AR. I still have the card and have green ticks every month since then. I didn't realise that an AR would/could adversely affect my credit rating but I have read a lot about this on this forum and elsewhere. I also have a CCJ dropping off my file soon and this will leave me with a perfect credit history for the last several years and no defaults or CCJ's. Most of the stuff on here about AR refer to the problems after the 'settled' date but mine were never settled - I just re started the normal payments. Does this make any difference or will the fact that the AR are still listed still negatively impact my credit rating until 2016?

Thanks for any advice

Don't you mean 2014?

Stabilo_Boss

I would like to have meant 2014 but I did mean to say 2016 because I didnt finish the AR until 2010 and I fear it will be visible for another 6 years (albeit with perfect green ticks since 2010)...

happy_bunny_2

In this case, they are not as bad as a default.

I would keep the card open until they do drop off.

I think that as its over 3 years old, it won't be much of an issue for cards or loans but might be for a mortgage. Saying that, from what I read on here you can get a mortgage with settled defaults 2 years old.

Where you thinking of applying for anything?

Stabilo_Boss

happy_bunny wrote: »

In this case, they are not as bad as a default.

I would keep the card open until they do drop off.

I think that as its over 3 years old, it won't be much of an issue for cards or loans but might be for a mortgage. Saying that, from what I read on here you can get a mortgage with settled defaults 2 years old.

Where you thinking of applying for anything?

Thanks for your response. I am hoping that is the case. I would like to apply for a mainstream credit card with a decent limit. I earn a good salary and I travel regularly for business and really need a credit card for hotel reservations etc. I can understand that where a human looks at an application (mortgages for sure and probably most loans) an AP which has continued with green ticks might be considered as OK but if a computer makes a decision (on a CC for example) and sees an AR (even though it was 3 1/2 years ago) it might simply reject. I guess I will just have to see. I ran my Experian credit check and noticed that the AP doesnt show (just green zero's but going back 6 years) but with Equifax they do show (only back to 2010 though and with green blocks every month since). Noddle (Callcredit) goes back to 2008 and does show the AP.

I got sent a screenshot of what my creditor could see when they ran an Experian report on me a couple of years ago and again what they see is different so I really have no idea!

sirwiggum

Op is correct, these will remain on until 2016.

I have been informed that ARs really are a bit of a 'black mark' on your account.

My issue was that after my DMP, the defaults from 2007 dropped off last year. However I have ARs until 2011 with BarclayCard.

These wont drop off until 2017(!).

I wrote to BarclayCard with this, told them that this has left me WORSE off than if I had not wanted to pay and defaulted, and that the ICO recommends AR for a max of 6 months. I initially requested that it be retrospectively defaulted 6 months after the AR had started (2007).
They got back to me and did say that they would look to get the account removed from the credit files.
I'm awaiting the January noddle updates to see if this has occurred...

Stabilo_Boss

sirwiggum wrote: »

Op is correct, these will remain on until 2016.

I have been informed that ARs really are a bit of a 'black mark' on your account.

My issue was that after my DMP, the defaults from 2007 dropped off last year. However I have ARs until 2011 with BarclayCard.

These wont drop off until 2016(!).

I wrote to BarclayCard with this, told them that this has left me WORSE off than if I had not wanted to pay and defaulted, and that the ICO recommends AR for a max of 6 months. I initially requested that it be retrospectively defaulted 6 months after the AR had started (2007).
They got back to me and did say that they would look to get the account removed from the credit files.
I'm awaiting the January noddle updates to see if this has occurred...

Thanks for the response. Just out of interest are you still with Barclaycard and now paying normally each month or did you run them down completely? The reason I ask is that I am still with them and I worry that if I write with the same request they might reduce my credit limit or demand I clear them up! I would be interested to see how you get on. Good luck!

happy_bunny_2

Some cards might only search 3 years. From what I read on here

sirwiggum

Stabilo_Boss wrote: »

Thanks for the response. Just out of interest are you still with Barclaycard and now paying normally each month or did you run them down completely? The reason I ask is that I am still with them and I worry that if I write with the same request they might reduce my credit limit or demand I clear them up! I would be interested to see how you get on. Good luck!

No probs.

Barclaycard had the account open purely for the payment plan, as soon as it was settled to 0 it was closed.
Means a fresh start all round.
In fairness to Barclaycard, they were one of the more understanding creditors, just that their way of using AR markers sticks on file for 6 years.

Since you are an active customer you could probably log on and complain via their secure messaging system.
If you generate plenty of interest payments and have been a good customer recently they'll probably want to keep you onboard as is.

I needed a card for business expenses (a week hotel + flights to the US can easily come to 1500 quid!) but the best I could do while I have the AR on file was 'Luma' with a 500 limit.
Santander did strangely offer me a 'guaranteed' 123 card, but I'm not sure if they're any use and they have a fee.