Credit score and part settled debt

JLH1980

I have been trying to get my credit score up for a while and have had no luck due to having a payment arrangement with a credit card. I finally managed to save and borrow enough to make them an offer to settle the debt at 50% which they accepted. I was advised that it would show on my credit score as 'part settled'. I was ok with this as the way I was going at the time, I would be stuck on the payment arrangement for the foreseeable future and this would continue to affect my rating. I have just had the first report since making this payment and settling the account and my score has gone down. The marker they have put on says that the payment was made more than 6 months late and was a part settlement. Every other account on my history - open and closed - are all green and no late payments or anything. I have a very low score now just due to this one thing.

Is it usual for a part settlement to show as a '6 month late' payment? I paid this before the next payment was due so was never late. Do I just have to sit and wait for this to go over time?

Thanks

Westminster

Did they ever default the account as this will be pivotal in how long this account will negatively impact your credit file

JLH1980

There was one payment about 2 years ago that was late but I've been on the payment arrangement ever since so it has been taken out by direct debit every month. I paid the arranged amount at the start of September and then the settlement amount in the middle of September. All the markers I can see on the account are green apart from the last one.

Thrugelmir

JLH1980 wrote: »

I have just had the first report since making this payment and settling the account and my score has gone down.

You've part settled a debt. What else would you expect?

Westminster

If the account was not defaulted (evidenced by a default date on the CRA entry) then this account (and all its payment history) will be visible for 6 years from the date you settled it.

So if you agreed a 50% settlement this September, it will stay on your file until October 2021.

JLH1980

Thank you, I thought that it would be on my credit history for 6 years but I was surprised to see that they had recorded the payment as 6 months late. I was just checking in case anyone else had seen this before.

And thank you Thrugelmir for your input - very helpful. I know it's part-settled, what was your point? My question related to how it was recorded.