Confusion ! satisfied/settled on credit reports

optimist68

Frankiesphone wrote: »

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

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.

optimist68

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

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.

Frankiesphone

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

Frankiesphone wrote: »

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?