Can I repair the damage?

MrsK147

I am on a DMP and have two remaining debts. My current credit score is very poor and I have one default on my file - this debt is now settled.

I also have a delinquent account on my file (although I am paying this via the DMP) and another showing missed payments (again I am paying this via the DMP).

My financial situation has changed and whilst I can't pay both off in full I can pay most off and pay the remainder via normal payments, not the DMP.

I am going to do this regardless of what it does to my credit history/score but my question is will this has a positive impact. At some stage in the future I'd like to be able to apply for a mortgage. If I do pay things off tomorrow is that going to help me get a better credit history sooner than paying it all off in six months.

My question is will taking action now help or is the damage already done?

Superscrooge

Whilst a lot of the damage has already been done through the defaults and missed payments. Your credit history will always look better to a lender if the outstanding debts are marked as settled.

So the sooner you pay off the debts, the sooner your credit history improves and the sooner you will be able to build up your credit history.

I can't see the point of waiting for six months to pay them off if you are in a position to pay them off now

MrsK147

Thanks for your response.

I do plan to pay them off now. Will my credit file begin to improve immediately then as it'll show I have paid them off.

Also one of them is currently listed as delinquent (despite me paying a sum each month via the DMP). Should I ask them to remove the delinquent payment as a condition of settling or won't it make any difference?

Thanks in advance.

The default I mentioned in my original post is being removed. It was with Halifax and they agreed to remove it this month as I settled the date in the same month.

Superscrooge

MrsK147 wrote: »

Should I ask them to remove the delinquent payment as a condition of settling or won't it make any difference?

Thanks in advance.
.

Credit Providers rely on Credit History being an accurate record as to whether you have kept to credit agreements or failed to pay back money you borrowed.

If you could just default on the debt and then pay it back several months or years later and have all trace of it removed. Credit providers would have no idea whether you were a good or bad credit risk.

So I think it highly unlikely the defaults would be removed, But at least they would be shown as settled.

There aren't really any short cuts to repairing credit history. It takes time