queries on credit rating/defaults

Drakk77

Hi,

Was wondering if I could get some advice on a couple of things, as I will be trying to get some kind of mortgage soon and would like to know what the best way to go about improving my credit rating.

1/ Is it worth paying off defaults so they are satisfied? I have heard some people say that satisfied/unsatisfied makes no difference to your credit rating?

2/ I have a couple of defaults (around 5 years ago) that I am now in a position, if necessary, to pay these in full. One is for about £5000 - I have never had any contact with the DCA since the default was registered. If i got in contact, offered a full settlement, would there be any possibility that I could negotiate to have this default removed as part of the settlement? (I know it will go in a year but could really do with getting rid of it sooner!)

Many thanks!

glentoran99

1) A Paid debt is going to be better than one still owed and they can of course still take court action getting a CCJ

2) you can only ask, but just because its not on you credit file doesnt mean it doesnt exist

Thrugelmir

Lenders memories will last far longer than the 6 years on a credit file. So you never know when a decision not to settle a debt in full will come back to bite you. That's the risk you will take.

Ben8282

This really depends on the amounts involved and the degree of risk you want to take.
Not paying anything gives you £5000+ towards your deposit.
If you do nothing, do not instigate any contact or respond to any contact then after 6 years the defaults will be gone. It will make no difference if they were settled or not; they will be gone. The chances of anybody trying to get a ccj at this stage are remote.
If you instigate contact the 6 years will start again all over. What if they say they will not remove the defaults. Will you still pay? As you have made contact they will pursue you if you don't and maybe even try to get a ccj because they know you have the money to pay!
My advice is to leave well alone and delay house purchase for 12 months.

glentoran99

It's nothing to do with 'instigating contact'