Confusion ! satisfied/settled on credit reports

Frankiesphone

I will offer my apologies first and foremost, if this is yet another question been asked previously.

My partner has a default on her credit file dating back to May 2008, which she has been paying on a monthly basis since Sept 2010. Never missed a payment and will be paid off in full to clear the debt, (much to our annoyance as the item is not, and has never been, fit for purpose)!:mad:

The credit file is reflective of this and has red marks DF on each month since 2010, although you can see the debt being reduced.

We are in the process of applying for a mortgage but we are confused and need help.

1. As its defaulted, will this drop off the credit file in May 2014, regardless of whether the debt is settled or not?

2. As we are going to apply for a mortgage, if we settle the entire debt BEFORE the end of May 2014, will this show on the credit file as SETTLED or SATISFIED and therefore remain again for 6 years on the credit file?

3. Or should we wait until after May 2014 to settle the account in full?

Thank you for your help

The_Boss

Apology accepted

1) Yes
2) Satisfied
3) Doesn't really matter given how close May is but do pay it off

fermi

1. Yes.

2. Satisfied, but no. It drops off 6 years from the default date, no matter what. Whether you settle/satisfy it or not, before or after the 6 year point from the default, has no bearing at all. A defaulted account is removed 6 years from the default. End of. No exceptions or 'ifs and buts'.

3. Settle it soonest as possible if you are in the process of applying, but bear in mind that it probably won't update with the CRAs to show the settlement for up to a month, so may make no difference to your file before it drops off.

Frankiesphone

The_Boss wrote: »

Apology accepted

1) Yes
2) Satisfied
3) Doesn't really matter given how close May is but do pay it off

Wow ! that was quick - thank you

Will the Satisfied (point number 2) stay on the credit file for another 6 years ?

fermi

As said, the whole account drops off your file 6 years from the default date, no matter what. No exceptions. Whether and when you settle the account makes no difference to that fact.

Frankiesphone

fermi wrote: »

As said, the whole account drops off your file 6 years from the default date, no matter what. No exceptions. Whether and when you settle the account makes no difference to that fact.

but will still have to be declared on any mortgage application?

fermi

Depends entirely what the application asks you to declare.

Frankiesphone

fermi wrote: »

Depends entirely what the application asks you to declare.

Thank you for your advice and help, much appreciated

Frankiesphone

fermi wrote: »

1. Yes.

2. Satisfied, but no. It drops off 6 years from the default date, no matter what. Whether you settle/satisfy it or not, before or after the 6 year point from the default, has no bearing at all. A defaulted account is removed 6 years from the default. End of. No exceptions or 'ifs and buts'.

3. Settle it soonest as possible if you are in the process of applying, but bear in mind that it probably won't update with the CRAs to show the settlement for up to a month, so may make no difference to your file before it drops off.

Apologies, completely missed this post! - Point 3

Date will be 23rd May - so if we applied for credit reports on say, 25th May, would they have dropped off by then?, and we are able to give these reports to a mortgage broker?

fermi

Again, depends..... this time on what reports you are providing.

Experian should drop the account off 6 years to the day.

Callcredit remove them either on the 6 year point or sometimes a week or 2 before the due date.

Equifax are the ones to be cautious of, as they often let entries linger for up to a few weeks beyond the exact 6 years point. Arguably wrong to do that, but usualy take more time and effort to complain and get it removed than the actual delay is.

Frankiesphone

fermi wrote: »

Again, depends..... this time on what reports you are providing.

Experian should drop the account off 6 years to the day.

Callcredit remove them either on the 6 year point or sometimes a week or 2 before the due date.

Equifax are the ones to be cautious of, as they often let entries linger for up to a few weeks beyond the exact 6 years point. Arguably wrong to do that, but usualy take more time and effort to complain and get it removed than the actual delay is.

Thank you for such information - all points noted, especially Equifax! ... proceeding with caution!