We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Confusion ! satisfied/settled on credit reports

2»

Comments

  • optimist68
    optimist68 Posts: 28 Forumite
    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

    OK, you are having a DF recorded each month against this account. So the account is active. The account is not settled or satisfied until all payments have been made. From May a DF will no longer be records and the status of the account will change. I am under the impression that it is from this date, i.e. when the account is settled/satisfied that the account will remain on file for a further 6 years.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    optimist68 wrote: »
    OK, you are having a DF recorded each month against this account. So the account is active. The account is not settled or satisfied until all payments have been made. From May a DF will no longer be records and the status of the account will change. I am under the impression that it is from this date, i.e. when the account is settled/satisfied that the account will remain on file for a further 6 years.
    Not true for a defaulted account.

    It is removed from credit reference files 6 years from the original recorded default date.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • optimist68
    optimist68 Posts: 28 Forumite
    fermi wrote: »
    Not true for a defaulted account.

    It is removed from credit reference files 6 years from the original recorded default date.


    So that's good news for the OP. As for my friend, if he pays his off quicker, i.e. in July this year, but there's still a number years to go before the file drops off (2018), will it show up with blank entries against each month instead of DF? Seems little point in paying it quicker if the file remains there for 4 more years. He might as well linger the payments on? Or will it improve credit-worthiness by the fact there are no more monthly DF's being placed on the file?
    Sorry, don't mean to hijak OP.
  • optimist68
    optimist68 Posts: 28 Forumite
    fermi wrote: »
    Not true for a defaulted account.

    It is removed from credit reference files 6 years from the original recorded default date.

    Just went into Experian and it says just that. I wasn't clear on whether it referred to marked DF or original default date.
    So there's no point the OP paying more than is needed by the end date, as there'll be no record of it.

    As others have said, you will need to wait a month or so for this entry to go from your file.
  • optimist68 wrote: »
    So that's good news for the OP. As for my friend, if he pays his off quicker, i.e. in July this year, but there's still a number years to go before the file drops off (2018), will it show up with blank entries against each month instead of DF? Seems little point in paying it quicker if the file remains there for 4 more years. He might as well linger the payments on? Or will it improve credit-worthiness by the fact there are no more monthly DF's being placed on the file?
    Sorry, don't mean to hijak OP.

    Hijacking thread? Not at all ! - Its good to see that we are all aware of situation and there is no confusion. :)

    I've learnt so much information in the past week, my partner and I are incredibly grateful to all those that have given superb advice and knowledge, what a fabulous forum this is ! :money:
  • optimist68
    optimist68 Posts: 28 Forumite
    edited 26 April 2014 at 10:25PM
    Hijacking thread? Not at all ! - Its good to see that we are all aware of situation and there is no confusion. :)

    I've learnt so much information in the past week, my partner and I are incredibly grateful to all those that have given superb advice and knowledge, what a fabulous forum this is ! :money:

    Certainly is. I've been trying to be helpful today on what I can help with. But, it's good to learn along the way too. Thank you.

    So, one last thing, I am still wondering whether the defaulted account should be paid off asap or should he just pay it back £20 a month (as he currently is) up to the end date - which is Sept 2018? I was thinking that a satisfied defaulted account might be better in the long term than one that's still being marked with DF?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.8K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.