Does paying old debt reset the 6yr Clock for Credit scores

Templeton.

Hi all,

Any advice would be very welcome.

I am being chased by Lowell Financial regarding some statue barred debt, which I intend to issue the standard Statute Barred letters to. I haven't done so yet as there is another debt with them from 2011 (thankfully my last remaining debt to clear (excluding statute barred ones!).

The questions is if I settle the debt which went into default in March 2011 in full, how will this effect my credit score and chances of applying for a mortgage? (I appreciate there are other factors like available credit etc.))

Does the 6 year clock for it disappearing from my credit file reset at settlement date, so would then appear for another 6 years?

Just trying to get my life back in order and looking for the right way to do this.

Any advice welcome!

Thanks

redux

The one from March 2011 will appear on files for 6 years from then, so gone in a bit under 2 years from now.

The statute barred one presumably no longer appears.

To clarify, just in case of potential misunderstanding, statute barring happens 6 years after last payment or acknowledgement of the debt, not simply 6 years after the default date, so it wouldn't apply if you have been making some payments in the mean time.

Templeton.

Hi, and thank you for the quick response.

For clarity, if I settled the 2011 debt today for example, it would still fall off my credit report in March 2017(as opposed to 2021, if the clock rest at settlement date)?

Thanks again for your help.

glentoran99

Templeton. wrote: »

Hi, and thank you for the quick response.

For clarity, if I settled the 2011 debt today for example, it would still fall off my credit report in March 2017(as opposed to 2021, if the clock rest at settlement date)?

Thanks again for your help.

That is correct

redux

Templeton. wrote: »

Hi, and thank you for the quick response.

For clarity, if I settled the 2011 debt today for example, it would still fall off my credit report in March 2017(as opposed to 2021, if the clock rest at settlement date)?

Thanks again for your help.

Yes, that's what I meant.

I can see I'd have been clearer if I'd added whatever the actual settlement date to the end of my first sentence.

fermi

A defaulted account is always removed from your report 6 years after the default date, no matter what you later do regards settlement.

An undefaulted account is different and stays for 6 years from the settlement date.

fermi

https://forums.moneysavingexpert.com/discussion/4756875

Templeton.

Great, thanks for all the responses and the link providing more detail!