My Credit Report and Defaults

geordiejc

Scenario:

I have 4 Debts and i'm on a DMP (Debt Management Plan) with Step Change.

Very soon i will be in a position to be able to pay off all my debts as i have taken Voluntary Redundancy from work (Lump sum)

My debt is as follows:

Pra Group (was credit card) 5.5k
Pra Group (was credit card) 4k
NRAM 11k
Lowell (was hire purchase) 1k

The debts under Pra Group are logged as defaults on credit file on 06/11 which presumably means that 6 years later on 06/17 they 'drop off' my credit file.

The other 2 are not logged as defaults and only as 'late payment/arrangement/lower payment/debt management/6 months late' type payments.

Question :

Would it have been better if they had ALL been logged as defaults so in 2017 my credit file looks clear? i fear that when i pay these debts off my credit file will stull be messed up as a result of the other 2 debts NOT being logged as defaults and just shows late payments.

Help on the above matter appreciated.

sourcrates

Yes if marked as "arrangement to pay" they won't drop off your file till 6 years after settlement.

fatbelly

If they're not showing as defaults, then the entries will drop off 6 years after they are settled.

I can't see how you can change that - unless you have some evidence of a default notice on them 5 years ago.

But it seems to be defaults that lenders look out for and the other markers may not be so bad. Each lender has its own system and the 'credit score' is meaningless.

The PRA and Lowell debt should be open to a full & final settlement if you want to go that way - the NRAM one too but maybe at les of a discount

geordiejc

Thanks for the advice chaps.

I'm in the process of writing to all 4 lenders with F&F Settlement offers starting at 45%

The Pra Group already offered me 15% & 17% verbally and sent them through email to confirm offers.

I spoke with a lady at NRAM saying they would not accept any reduction in the balance as the government owns them now and they cant physcially reduce the amount owed on the system and owe the tax payers money.

Lowell also said they would not offer any discount for F&F because the agreement ended in 2011 - which i thought was weird.

I was hoping to re-mortgage in 2017 as my interst rate is crazy - i thought all 4 accounts were defaults, sadly it looks like i'll have to wait until 2023 to re-mortgage.

edit: I have included in my F&F that i will be redundant as of July 2016 and have had mental illness, therefore do not foresee employment in the near future - all of which is true. I hope this helps them agree my offers?

fatbelly

The Lowell argument is rubbish - keep making the offer in writing anyway until someone with a brain cell reads it.