Full and Final Settlements and Credit Rating

Gonzo1987

My defaults will all clear off my credit file in 2016. In the mean time I've been working hard to pay off my debts, and have even been accept for a Captial One card with a £1000 limit, which I'm using for food shopping and repaying in full each month.

Anyway, I have been offered a full and final settlement from one creditor which I am going to accept, will this have any bearing on my credit file? I.E will it look better that it's been settled and not outstanding?

The_Boss

Yes, it will have an impact on your credit file - only a minor one, but a positive change nonetheless.

You don't have a credit rating though. See the top sticky thread in this forum or my signature for more information.

Gonzo1987

Thanks for your response, I'm aware I don't have a rating - I worded my title post incorrectly, but i still have it showing on my file that there are defaults, and I wanted to make sure a F&F would have a positive rather than a negative impact.

Will take a look at the thread :-)

InsideInsurance

F&F is always a good thing to have on your file as it shows you are responsible and fulfill the full terms of your agreement.

If it is a F&F offer they have given you need to make sure its F&F how the account is reported. It sounds like you arent paying in full and so a P&F (partial and final) is how it'd normally be marked up which does have further negative connotations as it shows you dont meet your commitments.

Gonzo1987

this is what they have said in their email - which to me says it will be shown as cleared in full

Therefore, we are prepared to accept the sum of £197.32 in full and final settlement of your account, payable by the 30th September 2014.

We consider this sum to be very fair and subject to clearance of funds, your account will be regarded as paid in full. Furthermore, any entry with the credit reference agencies will be updated to show satisfied.

The_Boss

Gonzo1987 wrote: »

this is what they have said in their email - which to me says it will be shown as cleared in full

Therefore, we are prepared to accept the sum of £197.32 in full and final settlement of your account, payable by the 30th September 2014.

We consider this sum to be very fair and subject to clearance of funds, your account will be regarded as paid in full. Furthermore, any entry with the credit reference agencies will be updated to show satisfied.

Ask them to confirm in writing that it will appear as such on your credit files.

Gonzo1987

Thanks I have asked them to confirm this and then hopefully that is one less debt to worry about!

Gonzo1987

I recieved this reply today.... I don't really understand what impact this will have on my credit file? Negative? positive?

We can confirm once the sum of £197.32 has been paid your credit file will be updated to practically satisfied, if you wish for it to be shown as paid in full you will have to pay the outstanding balance of £343.17.

I'm so confused!

[Deleted User]

It will be better than unsatisfied but not as good as fully satisfied.

Gonzo1987

I guess it's best i accept the offer, it's one less debt to worry about, and it drops off my credit file in 2 years once the 6 years since it defaulted is up anyway am I correct?

[Deleted User]

Yes, that's correct.