Partial Payment of a Default affect credit score?!

indebtindevon

Evening all,

I'm looking into paying a default I have had on my credit file, The debt has been bought by a debt buying agency called Kapama/Opus..

Someone advised me to offer them 50% of the £1435 total as a one lump sum settlement, But I have asked this question to a debt chairty and they said whilst it is a valid idea (As these parasitic companies pay pennies on the pound for these debts) that it would show on my credit file that it was only a partial settlement.

My question is, Is that a bad thing in real terms? I'm only going off of Noddle at the minute.. All my other debts are now finally 'Satisfied' and after I pay this in full or not I will then be debt free finally and then taking steps to start IMPROvING my credit score..

But I would rather pay every penny of said debt rather than it sit there saying 'Partially Settled' or similar and ruining my chances of me getting a mortgage of my own 3-5 years down the line (Thats my long term goal)

Please chaps, Any help appreciated

Not so much, inDebtinDevon!

[Deleted User]

Partial settlement would be a lot better than the current default. Having already defaulted, there is little difference between satisfied and settled.

If they accept a settlement you can afford, I would take it. However, bear in mind that they will buy a lot of duff debts that they won't get a penny for (DCAs tend to get the customers who are really rubbish at repaying), so the fact they may not have paid a lot for yours doesn't automatically mean they will accept a very low offer.

Lastly - ignore your credit score and it doesn't mean anything, and focusing on it could lead you to make the wrong decisions.

indebtindevon

I know that the infamous 'Credit Report' isn't the be all and end all of everything, But I cannot upgrade my Lloyds cash account to a full current account..
I'm almost certain it is because of this one default on my financial account information, It can;t be anything else? Can It?

Would you say paying in full is better than making a deal with them? I am in a position to pay the whole thing.. Obviously I'd like to pay less, but not to the detriment of being able to get the offer of financial services in the future.

Thanks in advance

redux

Look at the default date. The account drops off being recorded on credit report files 6 years later, irrespective of what state it is in by then.

So if your ambition is think about mortgage in 3-5 years, there is little point worrying too much about this if it's now 4 or 5 years old.

You might try starting at 40%, though some here say lower.