Newbie needing a bit of advice!

richie2016

Hello,
I'm a long time reader but first time poster! I was wondering if anyone could help me with the following.

I have a few debt's that defaults were registered on, these are nearing the end of the 6 years on my credit file. After coming in to a bit of money i am in a position to clear these debts now, I was wondering is it best to wait until the defaults have dropped off my credit file to pay them or should I pay them now? The only reason I ask is that I noticed the line that 'settled accounts stay on a file for 6 years from the settled account date' so this would in effect keep the account showing on my credit file?


Also once defaults have dropped off, is it known at this point for your credit file to improve i.e rating wise? The only reason I ask is i'm trying my hardest to improve my credit rating but it's hard when you can't lend credit :-( All as a result of being young and care free nearly 6 years ago!

Kind Regards

Richard

brizzledfw

Sorry Richard, am not sure, but am sure someone will be along to advise.

Well done on dealing with this and trying to improve your credit score along the way

Brizzle

Pandora_2

Hi,
I'm afraid I can't help either but I'm wondering the same thing as well so will be keeping a close eye on this thread in order to try and get some advice as well. Hope that's ok?!

Good luck and I'm sure someone will be along soon that can help

sourcrates

Defaults will stay on your credit file for 6 years, regardless of whether you settle them, or not.
Settling them before the date they fall off your file, will therefore, not extend the default period.


If you were to make an arrangement to pay monthly with the creditor, then that is a different matter, the default period would still end as normal, but AP markers, (arrangement to pay) would appear on your file for a further 6 years from the date you settled the account.


Hope this helps.