default on credit file

stuartduncan

hi all, i have a default on my credit file from 2012. it has been passed onto lowell and i have basically ignored it ever since.
this is the only bad mark on my credit file and i really need to sort it out as its affecting my credit score pretty badly.
the default is for £629 which will drop off in a couple of years. I'm not sure if paying this will do more harm than good because if i pay it, will it show that i have settled a default and stay on my file for another 6 years? or once i pay, will the whole lot drop off after the 6 years from the default date?
also every month lowell keep putting a red mark on the file, will all this disappear after the original default drops off?
thanks for any help

Westminster

Neither of your options will happen.

If you pay it, it will be marked as Settled and will still remain on your file for 6 years from the original default date.

Be aware - it is not unheard of for these companies to go for CCJ's just before the 6 year mark.

stuartduncan

thanks for the reply.
so the best option for me would be to pay them. just to be clear, if i do pay, will i have a clean credit file 6 years after the original default?
i really have no idea about this kind of thing

Westminster

What you should probably try first is getting the creditor to prove that it is a legitimate debt - although from 2012, it almost certainly is.

Post a thread on the Debt-Free Wanabees section of this site and you should get some guidance on how to go about that.

However, to answer your question, yes paying it off will ensure it definitely disappears after 6 years - although the creditor in question may well retain their own internal records longer than this which means they may continue to turn you down for new credit accounts. Not much you can do about that.