advice on one off lump sum settlement needed please

Shelbi

Hi guys,

not sure if this is the right place to ask this but here goes....So I have been paying off a bill of £21,612 at a rate of £450.25 pm, ive never been late or missed a payment, this is something the creditor and I agreed, not through any legal settlements or anything, I got a statement of accounts along with a letter from them to say if at any point I want to pay a one off payment they will give me a discount of 25% off the balance at present will be 11k instead of the 15K odd left. I was wondering if I were to do this would this impact negatively on my creditscore. After everything is paid i hope to save and apply for a mortgage, dont want this to effect my chances. Im not sure if its worth paying it in bits or saving up to pay one off (whilst still paying monthly) to take advantage of the discount. Has anyone encountered this? or have any advice on what to do, would be greatly appreciated..thanks!! x

YorkshireBoy

Shelbi wrote: »

I was wondering if I were to do this would this impact negatively on my creditscore.

That would depend on how the creditor chooses to report the settlement, ie partial or full.


But if you have an 'arrangement' now, does this 'arrangement' show on your credit reports as such, ie is there an AP (arrangement to pay) marker on the account?

Shelbi

hi yorkshireboy,

Thank you for answering so quickly..at the moment there is no report showing of it on my credit report either on experian or noodle. It was a claim with my car insurance, never seen it on there but owe the money so i suggested i set up a standing order to pay the balance. Has never shown on any of my reports, though I do owe the balance and have been faithfully paying it. I hope this makes sense, this whole thing has been pretty confusing. I will contact them and ask them to clarify how if they plan to show the account as settled with the discount. Thank you so very much. Im really grateful!