Will an arrangement have a negative effect on my credit rating?

Wots_her_name_again?

A few years ago i was made redundant and came to an arrangement with my credit card company (Vanquis) that I would pay an affordable amount (£40) on to the credit card which would be increased when my financial situation improves.

When i was working to called to say that i was working and we could end the arrangement. I was told that once the balance was paid off the account would be closed.

the arrangement is showing up on my credit report, will this have a negative effect on my credit report?

I am hoping to apply for a mortgage in 6 months

YorkshireBoy

Wots_her_name_again? wrote: »

the arrangement is showing up on my credit report, will this have a negative effect on my credit report?

Yes, but the severity of it will depend on the dates involved.


When was it?

sirwiggum

As YorkshireBoy confirms, it will have an affect as it showed that you could not keep up with repayments.
Some call it Default-lite...

What timescales are involved?

ICO guidelines state that an arrangement should really be for 6 months max.

Also, if it started over 6 years ago, it would have more of an adverse affect than a default (which clears after 6 years from date of default).
Some, including myself, have gotten AR marker accounts removed by arguing this last point.