should experian report still show default status 8 after account cleared?

drod

I've finally decided to take my head out of the sand and look at my credit report with experian. It shows rating of 851 with one if the negatives being a record showing default by cabot with status 8. This debt was originally from the bank account and was paid in full as soon as the debt went to Cabot. I spoke to them today and they agree that there is a nil balance on the account. The record will fall off altogether in 2016 but should it still be affecting my credit rating when it was paid in full. Don't know if it makes a difference but report states satisfied rather than settled. Hope someone can shed some light on this

glentoran99

yes it will stay on your account until 6 years after the default, and satisfied is normal for a defaulted account

fermi

It is also normal for the status history to stay at 8 with Experian even on a satisfied account. It has no negative impact as it's the main marker saying the account that matters, and it's understood this is just how Experian by convention show satisfied accounts on their reports.

drod

Thanks for the swift replies. It is showing up in red as one of the negative factors on my report

fermi

drod wrote: »

The record will fall off altogether in 2016 but should it still be affecting my credit rating when it was paid in full.

Yes it should.

A default is still a default, even if it is a paid in full one, and will rightly be a big negative on your file. Less so the older it gets, but still a negative to any lender who sees it as such.

drod

Am I right in saying that I can write to Cabot and ask them to change/remove the entry? If so, is it likely that they will do so? The default amount was 470 pounds and was paid in full

James_B.

drod wrote: »

Am I right in saying that I can write to Cabot and ask them to change/remove the entry? If so, is it likely that they will do so? The default amount was 470 pounds and was paid in full

No, they should not remove it, as it is a true statement of the facts. You did default, and so your report needs to show this. It was later settled, which should also be reflected.

Potential lenders need to know that you are someone who has failed to honour a deal as it was first agreed, that's the whole point of your credit file. If you later found a way to pay back what you owe, that helps, but you should not be able to hide what happened. A lender has the right to decide for themselves how seriously they view your actions.

And please note, for the over-zealous mods, I am making no moral judgement here...

glentoran99

drod wrote: »

Am I right in saying that I can write to Cabot and ask them to change/remove the entry? If so, is it likely that they will do so? The default amount was 470 pounds and was paid in full

no, Cabot wouldnt be able to change the entry, it would have to be the orginal creditor and its very doubtful they would change it as you defaulted with the