6 year rule

michaelmcw

Just a quick query on the 6 year rule.

I had a Santander loan which i fell behind with payments. Will the late payments stay on my file for 6 years since the missed payment or 6 years since the loan was settled?

I have no missed payments in last 4 years but loan was only settled last year. Will missed payments drop off in 2 years or do I need to wait another 5 and a half years for the whole loan to disappear?

Thanks in advance.

matttye

5 and a half years.

6 years of account history remains on file for 6 years after closure date, unless you default, in which case it all drops off 6 years after default.

A 6+ year old missed payment is unlikely to have much of a negative effect though.

rizla_king

May not have much of an effect, but it is a strange state of affairs.

iancrt

matttye wrote: »

6 years of account history remains on file for 6 years after closure date, unless you default, in which case it all drops off 6 years after default.

its 6 years in total, not 6 years for 6 years.

So a report generated now shows nothing prior to January 2008. An account closed in Jan 2012 will only show detail for 01/2008 to 01/2012, not 01/2006 to 01/2012

rizla_king

Thats what matty says as far as I read it.

iancrt

michaelmcw wrote: »

I have no missed payments in last 4 years but loan was only settled last year. Will missed payments drop off in 2 years or do I need to wait another 5 and a half years for the whole loan to disappear?

matttye wrote: »

5 and a half years.

Correct Answer is 2 years. Missed payments 4 years ago will drop off a normal CRA report in two years.
The loan will be listed as settled and disappear after 5.5 years

rizla_king

They won't now the account has been settled.

Experian_company_representative wrote: »

When an account is closed it is frozen and retained for six years. So the status history will be the six years before the settlement date and this will not change again until the account is dropped.

James Jones

The previous 6 years before settlement shows for 6 years after settlement. Doesn't drop off as it would with a live account.

Experian_company_representative

An account can carry up to six years' history and once settled is frozen and retained for a further six years. This is why if you've missed payments it's probably best to either settle straight away or keep the account open. But as others have said, very old late payments are unlikely to affect credit scores significantly.

James