Pay default or not

devlopands

I have 2 defaults on my credit file currently:

1. Provident: £1,407 Defaulted on Jan 2013 - Partial Settlement June 2013
2. Vanquis: £3,545 (showing on credit file as Lowell) - Defaulted on Oct 2013 - Unsettled

Aside from these I have 2 credit cards and various other accounts: Car finance, O2, BT, Virgin etc - all are paid each month with no missed payments etc.

My question has 3 parts:

1. With the above, what would be the likelihood of getting a mortgage with a 10% deposit?

2. How much of a positive effect will paying the Vanquis account have on my credit file?

3. If i pay it now, will it still drop off my account 6 years from the default date, or will it drop off 6 years after the date i settle it

DandelionPatrol

1. No chance at a decent rate
2. Vanquis on its own is a waste of time. You need full settlements on both. £5000 of defaults does not look good, it does not look much better partially settled and even settled in full it is not brilliant
3. 6 years from default

coops678

Hi devlopands,

It sounds like it will take time for you to consider all of your different options.

1. Suggested reading: uswitch.com/mortgages/guides/bad-credit-mortgages/

2. My credit file will be marked with full and final (reduced overall payment) or paid in full for up to 5 years (Scotland) after I have paid off my debts.

3. My defaulted credits (4 credit cards) will be marked with full and final/full payments for up to 5 years after my final payment (according to Christians against poverty who manage my repayments)

An old website that may be helpful?

equifaxuk.custhelp.com/app/answers/detail/a_id/238/~/how-long-will-information-stay-on-my-credit-report%3FF

Sounds like it will take time for you to find accurate information relevant to you. Wishing you all the best with your decisions and good luck with it all.

Cx

National_Debtline

Credit files are quite complicated documents and the score is constantly influenced by many factors to give you your overall rating. These factors can include your age, whether or not you are a homeowner and/or on the electoral role, anyone you have financial associations with and, of course, your financial history.


If you settle a default (partially or fully) then that will be more positive than an outstanding default. Settling the debt will also prevent a creditor obtaining a CCJ (which can cause more damage to your score). But your score may not improve immediately because of all of the other factors that affect your overall rating.

Laura
@natdebtline