Statute barred debt

redbee

If I have a credit score and report which is fair, could a statute barred debt affect obtaining credit in the future?

I read on a thread on this site somewhere that statute barred debt would have to be declared in a mortgage application (even thought is can't be seen on file), and now I am worried that the work I have put into repairing and improving my score and file is pointless in this regard.

Thanks

Tixy

If the statute barred debt has already fallen off your credit file then it won't affect what lenders when you make a credit application.

For a credit/mortgage application it is arguable if you need to declare the existence of any debts that are statute barred. In England/Wales the debts do still legally exist and so arguably you should. However if they are statute barred and you do not intend to pay then there is also an argument that they should not affect your affordability.

I wonder if one option could be to try offer the statute barred creditor a nominal amount in full & final settlement of the debt pointing out that the debt is already statute barred and will remain so - they get back something and you would no longer need to declare the debt exists.

I suspect some people simply do not mention any statute barred debts when they apply for a mortgage (but I wouldn't personally want to give that advice).