debt post 6yrs mark

Debt2Null

Hi all,

Apologies for my newb-ish questions.

As my debt is about to hit it's 6 year mark. Am I right to say my credit rating will start going up now?

Also, if I don't pay the debt even after it's dropped off (due to 6 year mark). Do I run the risk of having a CCJ filed against me by who ever owns the debt?

In addition to the above, would it be advisable to have the debt settled/paid and not necessarily leave it to drop off?

Thanks in advance for the replies. All replies welcome too.

Tixy

If you mean 6 years since a default was dated on your credit file then once those defaults have dropped off new potential lenders will not be aware of them and so your ability to get accepted for credit will improve.

A creditors has 6 years (in England/Wales) to commence court action from the date you last paid towards the debt or acknowledged the debt - this won't be the same date as the default date. If they tried to take court action after that date to obtain a CCJ you would be able to defend against it using the limitation act.

If your debts have defaults then the account record will drop off your credit file after 6years regardless of whether you have paid it or not at that point.