Missed loan payments

Brianmcgee99

In 2008 I lost my job and missed a few loan payments. I admit I hid my head in the sand a little bit and eventually the loan was passed to the banks in house collection team. I made an arrangement to pay the loan and the account is now settled. I paid the full amount including interest.

During the time I was paid the loan, the credit filed showed AP for each month. However, now the account is closed there is a 6 in each month as if a payment was continuously 6 months over due.

Can you confirm that this is correct? I'm worried that a few missed payments are going to affect my credit rating for 14 years (2008 - 2022). The rest of my credit file is impeccable and I recently got accepted for a new credit card (0% balance transfer).

Is there anything I can do? I was under the impression that the account was only delinquent before I made the arrangement to pay.

Any help would be appreciated.

Arleen

As I understand this is the best outcome you could've hoped for, as the account was not defaulted and just shows as account with late paymetns which is now settled in full. It is also going to fade away 6 years from closing day (most likely date of your last payment), and will have less impact with each passing year.

Brianmcgee99

Thanks for the response. Do you know how much affect it has? I know it's very subjective, but if had perfect credit for the next few years would it just been seen as a minor thing?

Arleen

That only lenders know, and I imagine that it highly depends on loan amount too.

Brianmcgee99

My issue is more to do with the negative credit impact when I was under the impression that it was OK. I was happy to accept that I had missed payments and it would affect my credit for up to 7 years but I agreed a repayment plan that was only slightly less than the original loan and I paid every penny over 6+ years and never missed a payment.

It seems unfair that its going to affect my credit file for yet another 6 years.

Arleen

Well, you had 6 years when you were paying that to still check up on the matter and renoegotiatte, which you didn't. And the time now has passed, the account is settled and it is what it is. Also you didn't mention that the settlement was lower than the original agreement, is that also reported? Because that would be a very bad sign to future lenders.

Brianmcgee99

I paid the full amount including interest. There was nothing to negotiate, my credit file was OK and the lender told me the same.