Settling a Defaulted account?

creditfixing

I have an old account with a default date in 2011, so I know it's set to drop off my report next year.

I'm currently in the process of trying to clean up my report and improve my score, and was wondering if it's worth paying to settle the account now or if I'd be better off waiting for it to drop off instead.

Also, does anyone know if making a payment now would stop it from dropping off my report next year?

So confused - Thanks

DCFC79

Why improve your score ?

It doesn't get you the golden keys to the kingdom, lenders don't even see it.

National_Debtline

Hi

Paying the debt off now will not prevent it from dropping off your file next year. However, once it drops off it will no longer have a negative impact on credit applications whether you pay it off or not.

Unless you particularly need to make an important credit application like a mortgage before it drops off, and if the creditor isn’t actively pursuing you for a payment, you could just leave it.

James
@natdebtline

creditfixing

Thanks for the info guys - I was worried the 6 years to drop off could possibly be re-set by me making a payment now!
I don't need to make any urgent or important applications at the moment as I was just looking to do what I could to improve my report as much as possible.
Seems I might be better off just letting it drop off then, and concentrating on managing existing accounts instead ...
Cheers :T

Thrugelmir

You may yet be pursued for the debt.

Pegasus_1981

I have an old BT default wrongly put on my credit file, i only spotted it when i got my report a few months back whilst settling a few other debts, its due to drop off in a couple of weeks, I wont be trying to settle that as it'll just vanish and I wont be chased, its only £200.00.

If it was say only 2 years old and actually my fault and I owed it i would settle it but it'll be gone by month end so no chance i'll settle it! lol