Paying off debt and credit file

rorysdad

Hi

If you pay off all your debts in one go - where there are defaults registered on your credit file - does that put you back in a position where you go frombad credit to good credit worthiness?

Or is there a period where the defaults stay on file and continue to affect your credit worthiness?

RD

sourcrates

rorysdad wrote: »

Hi

If you pay off all your debts in one go - where there are defaults registered on your credit file - does that put you back in a position where you go frombad credit to good credit worthiness?

Or is there a period where the defaults stay on file and continue to affect your credit worthiness?

RD

They stay on your file for 6 years from default date, settled or not.

Sazzie23

Although it's worth remembering non defaulted debts will show on file for 6 years from last payment rather than 6 years from default.

National_Debtline

Hi there,


Settled defaults will be more positive that defaults that are outstanding but it may not be an instant improvement to your overall credit worthiness. The defaults will show for 6 years from the date of default and then they will come off your file.


Your overall credit rating is made up of several things, things such as your age, whether or not you are on the electoral role, whether or not you have a mortgage, other people you are financially associated with and your credit history. Ensure all of your other details are up to date and correct. If you can settle the debts then that will help you improve your file in the long run.

Laura
@natdebtline