Settled or satisfied?

pitbullpeebs

I currently have 3 defaults caused by my separation, the debts have been sold on to other companies & Im currently paying them a small reduced amount. I've now sold my house & looking to pay the debts off. They've contacted me explaining that they may accept a reduced amount to clear them but they have said that my credit file would say settled rather than satisfied, is their much difference as I would obviously rather pay a reduced amount but also want to make my credit look better as I'm looking to apply for a mortgage again in around 12 months time.

fermi

Whoever you spoke to sounds a tad confused in explaining it.

If the account has been defaulted then the status when paid off will satisfied.

If reduced amount is paid, then it may also say it was a partial one.

Pegasus_1981

Hi,

I have done something similar, I had a few debt which defaulted, I couldn't afford to settle them in one go and in an effort to clean up my credit file and reduce my debt i agreed a settlement figure with them.

They now show as partially satisfied with zero balance owed, my score did increase greatly in doing this, it quadrupled but as other say the score inst seen by anyone else & its down to conduct.

Since I have paid of the debts I have had an increase on my credit card from 4.8k to 7k based on performance with that creditor and my payment history.

A new application I made was also approved with a 1k limit so its possible to get credit with satisfied defaults and a good performance on the rest of your file.