Default Account on record

AlanN

Hi

Me and my partner have recently applied for a mortgage and been declined due to my credit score, i have got my credit file and found a defaulted bank account going back 5 years,
My question is, Should i leave it to fall of me record in a years time or settle the debt in the hope it may help get a mortgage?

I would rather no whether paying this off will help in any way and if i left it to the 6yr point would this cause further issues once it is off my record.

Thanks

Alan

foxwales

Settle the debt.

You haven't just missed repayments on this debt, you have ignored the debt in it's entirety and as it's a bank account, it will remain open and noted on your credit file as having a negative balance I imagine, as you owe money on it.

Settle the debt and get the account closed.

AlanN

The account has been closed due to it being defaulted,

My question is will settling the the account actually assist in getting a mortgage or will this make the account stay on my record for longer?

fermi

If it has been recorded as a default then paying it won't make it stay longer. It will be removed 6 years from the default date, paid or not, no matter what you do.

It being paid will look slightly better until it does drop off, but a default is still a default and not good on your file even if settled.

AlanN

fermi wrote: »

If it has been recorded as a default then paying it won't make it stay longer. It will be removed 6 years from the default date, paid or not, no matter what you do.

It being paid will look slightly better until it does drop off, but a default is still a default and not good on your file even if settled.

Thanks for that reply, This is what my thought on it was.
I just wanted to check that if i was to pay it that it would not stay on longer than the 6yr period before i investigated the account.

So based on that reply i would say a default is a default regardless if settled

We have been thinking about leaving the mortgage until after this has been removed just so we don't get any more declines on our records

rizla_king

If you can wait, I would wait. You'll get a much better deal and find it much much easier with the default gone.

AlanN

rizla_king wrote: »

If you can wait, I would wait. You'll get a much better deal and find it much much easier with the default gone.

We don't really have a rush on things as we could rent for the period needed.

Just after some opinions and facts if any regarding the default account