credit rating after credit card settlement help

jmaow

I was unemployed and unable to keep up credit card repayment with creation credit card, I contacted them and arranged to pay £20 per month, my friend offered to help and asked creation of they would accept £1850 instead of £3000 I owed, they agreed and the letter I have off them says the have taken it is a loss and won't be pursuing me for any more money. How will this affect my credit rating, for landlord check, now I'm working I don't know if I should pay back the rest and get a credit card to help repair my credit rating? I've not had any difficulties before and am worried my credit rating will now be very poor.

Westminster

It certainly won't be in any way beneficial when anyone is doing a credit search on you. Probably it is marked as defaulted and partially settled along with a range of Arrangement to Pay markers.

Get a copy of your CRA files to see for yourself.

molerat

It should not affect you as far as renting is concerned as landlords do not get a full credit history and usually only see CCJs. It will affect your ability to get credit though as you will be showing an arrangement to pay and a partial settlement which will trash your record. Paying the outstanding amount will improve your record but not in a big way instantly.

andyfromotley

Well your credit history will take a hit, but over time that will repair itself.

It will have no bearing over landlord checks, they arent entitled to see such information. The checks they carry out look for CCJ's and Bankruptcies.

You have just had problems caused by credit card debt and are asking if credit card debt is the way to repair your credit history?? I'll give you two guesses at the answer to that one imo.

Oh and no dont pay the rest of the balance. It wont erase it from your credit history, simply change it from partially settled tp paid in full. Put the money in a savings account and use it as an emergency fund. This will hopefully stop you from finding yourself in this position again.