Credit Card Default

Nova-Samuel

Hi, new member, first post.

I have a defaulted credit card and the balance is at about £800, it is now sat with a debt recovery company called 'Credit Solutions Limited'. I am making small contributions each month but I will soon have enough saved to pay it all off.

It's badly affected my before near perfect credit file.

Question is, after I have paid CSL, will they automatically update Barclaycard and the credit referencing agencies? Will I see an immediate improvement in my credit score?

I know there's a 6 year limit for defaults and I know my credit score won't fully recover until then, but will paying it off look better on my score?

Thanks in advance.

L

[Deleted User]

Your score is irrelevant. It's a secret that only you and the CRA ever see.

Settling the debt will improve the way that lenders view you, but it will remain on file for 6 years from default.

Dobbibill

^ the same as they said ^

It will state settled in full which is marginally better than partially settled.

Learn from it and keep up to date with all future payments on any commitments.

All data reported shows for 6 yrs, you need to now evidence your good history vs bad mistakes and as it gets further back in your history it will impact you less and less.

Welcome to the forum too

Nova-Samuel

Thanks for the responses guys.

The debt happened when I was going through a tough patch, but luckily it's my only debt. I just wanted to know if it would make a noticeable difference to my lendability if I just cleared it sooner rather than later, I'll still be paying it off ASAP.

spob

What zx81 said ^^^^