Debt paid off - when will my credit rating improve?

alannadrama

Hello all,

After paying small installments off my debts, I'm now in the lucky position to pay everything off in one go because I've come into some money.

I've written to all my creditors telling them I can pay the balance in full, on the provision that they remove the default from my credit file as soon as payment is made. Just waiting for a response from them now...

My question is, once I pay it and presuming they agree to wipe the default, how long will it take for my credit rating to improve?

marliepanda

Correctly issued defaults should not be removed from your credit file, so you may not get your way with that one.

However they will get marked as settled which will help, and they'll drop off after 6 years.

Tixy

Its unlikely they will agree to remove defaults, although occasionally some do.

That said if they do then it depends on what they leave behind instead - if the change the entry to show (for example) missed payments for a couple of years then these would be visible for 6years after you settle.

If the defaults are quite old it can be better to keep them and the record of the debt and default then drop off 6years from the default date.

alannadrama

Right okay, thanks.