When to pay defaulted account

GettingBack

I've been trying to search this and have been struggling to find an exact example.

In light of how others have been treated, this is getting paid off, it's a case of timing.

I have a credit card in default to the tune of £1300. It's not too long before the default is 6 years old, and now over 6 years since any payment or acknowledgement.

Question is. With a few months to go, and to minimise impact on my credit report, do I pay now or pay once it drops off?

If I pay now, will the clearly obvious sudden settlement of a delinquent account persist on my record for people to see for another 6 years, or will paying after the default falls off mean it's never seen in my record again?

I would prefer that once the default goes off the CRA file, that's the end of it rather than evidence of the debt appear and be a credit score factor for a further 6 years.

Hope that all made sense!

Thanks all!

CKhalvashi

GettingBack wrote: »

I've been trying to search this and have been struggling to find an exact example.

In light of how others have been treated, this is getting paid off, it's a case of timing.

I have a credit card in default to the tune of £1300. It's not too long before the default is 6 years old, and now over 6 years since any payment or acknowledgement.

Question is. With a few months to go, and to minimise impact on my credit report, do I pay now or pay once it drops off?

If I pay now, will the clearly obvious sudden settlement of a delinquent account persist on my record for people to see for another 6 years, or will paying after the default falls off mean it's never seen in my record again?

I would prefer that once the default goes off the CRA file, that's the end of it rather than evidence of the debt appear and be a credit score factor for a further 6 years.

Hope that all made sense!

Thanks all!

The default will go after the 6 year mark, from the date of default.

fermi

Yes. The default and every detail/history of the account will be removed 6 years after the original default date, no matter what.

Paying it before, after, or not at all, changes nothing about that. 6 years from the original default no one checking your report will see any sign that the account ever existed.

GettingBack

So settling the account would show as settled with the CRAs and then when the default hits 6 years, the entire account will fall off my report. Is that correct? No evidence of the bad debt is what I'm after.

Thanks all!

fermi

Yes, that is correct.

fatbelly

GettingBack wrote: »

... and now over 6 years since any payment or acknowledgement.

Statute barred then

Ben8282

GettingBack wrote: »

So settling the account would show as settled with the CRAs and then when the default hits 6 years, the entire account will fall off my report. Is that correct? No evidence of the bad debt is what I'm after.

Thanks all!

Yes and NOT settling it will have exactly the same effect. After 6 years the entire account will fall off your report. No evidence of the bad debt.

GettingBack

Thanks again all. Just want it off the report with no record of it at all after the 6y, just because i paid it off.