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Should i pay or not...?

I have 3 defaults on my credit file.

I am enquiring to know as to whether to pay them off and they will still be on my file

or

Not pay them off and wait the 6 years?

By paying them off and it shows as settled, will my credit score increase? but it just means that the default will still be shown on my file...?


I'm in a dilemma because to me i see there being no point in paying them off if they are not going to be removed and/or my credit rating wont be increased.

If I am wrong, please correct me.

Thanks.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Satisfied defaults look better to lenders than unsatisfied ones.
  • a4a
    a4a Posts: 313 Forumite
    It really depends what your plans are for the next 6 years. It always helps to have them shown as settled but in reality, a default is a default. The older the defaults get, the more important it is that they are shown as paid.
  • but if i pay my defaults (even though i know they stay on my file for 6 years) will my credit score increase?


    thanks
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It may - but that's not important. It's the information that is shown on your accout which is important, not the score.
  • so if somebody has 900 credit score with a whole load of bad/arrears information that is not good?

    my file is not that bad if im completely honest... as im ignorant to this, i thought it was all about credit scoring which allows you to get things in the future etc...

    having received those comments, i think i'll pay them all off now
  • JKSandy
    JKSandy Posts: 711 Forumite
    "i see there being no point in paying them"

    What a horrible way to look at it. If you owe it pay it, why spend years bing chased by debt collectors? Or risk them becoming CCJ's?
    All that glitters is not gold.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    hitmanhart wrote: »
    so if somebody has 900 credit score with a whole load of bad/arrears information that is not good?

    Correct. You can be bankrupt and still have a 999 score. Doesn't mean that you're getting a loan from anyone though.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you don't settle the debts. Then the lenders you default on could blacklist you indefinately from obtaining any further credit lines. They can hold this information as long as they wish.
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
    Thrugelmir wrote: »
    If you don't settle the debts. Then the lenders you default on could blacklist you indefinately from obtaining any further credit lines. They can hold this information as long as they wish.

    To clarify: '...obtaining any further credit lines from them'.
This discussion has been closed.
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