General advice

Littlechris86

Evening all.

Hoping I can get some advice here if at all possible please.

I have two items of debt which appear on my credit checks with the main agencies. Just under 600 which I have reduced from around 5k and this is on a balance transfer card. I also have 2k on an old bank account which has been defaulted since 2011. Now I intend to clear both of these I just wonder if there is any benefit to paying one off before the other for my credit score?

On a more curious note I had a career development loan and the repayments were set for 2011. I wasn't able to pay them at that stage and it was subsequently passed to a DCA called Capquest. I make a token monthly payment and this does not appear to show on my credit score having checked Equifax and Experian and Noddle.
Is there any reason for this? Also I intend to start saving for a deposit over the coming years and wanted to know if this would scupper my chances?

sourcrates

Hi,

Ignore credit scores, they are a made up number which fluctuates in the slightest breeze, it's your credit history that counts, not your score.

There is no benefit either way to clearing your debts in any particular order, but settled accounts look better than unsettled ones.

Defaults will be there for six years, then fall off your file.

Not all types of debt appear on your credit file.

Littlechris86

Thank you for that.
Do you have any idea why it wouldn't show? The amount was for just over 20k and it has seemingly been sold to Capquest since 2011. If it isn't on my credit check how likely is it to affect me when I look to buy a house?

[Deleted User]

Possibly badly, as its a long time unpaid debt, would you lend to someone who had such an outstanding debt?

sourcrates

Littlechris86 wrote: »

Thank you for that.
Do you have any idea why it wouldn't show? The amount was for just over 20k and it has seemingly been sold to Capquest since 2011. If it isn't on my credit check how likely is it to affect me when I look to buy a house?

I can't find a definitive answer.

If it does not show on any of the credit reference agency files, then it can only mean that whoever provided the original finance does not report on these type of loans, to the CRA's.

If it's not on your file, it won't affect you at all, except if the creditor takes legal action, you will then have a CCJ on your file.

Littlechris86

Is that the sort of thing that would have happened by now if it were 2011/2012 the debt was passed from NatWest to Capquest?
Once a creditor sells the debt do they then effectively wash their hands of it and it's up to the new owner, Capquest, to take legal action if they wish?

sourcrates

Littlechris86 wrote: »

Is that the sort of thing that would have happened by now if it were 2011/2012 the debt was passed from NatWest to Capquest?
Once a creditor sells the debt do they then effectively wash their hands of it and it's up to the new owner, Capquest, to take legal action if they wish?

That is correct yes !!

MrsTinks

Don't forget when it comes to mortgage applications it's a little different to unsecured debt applications. They will go through an affordability check with you (or should do) and if they spot a monthly outgoing they might ask you to elaborate. If you lied then I guess it might be considered fraudulent if you were later found out... you might want to check up on that.

The point for a mortgage provider is that this debt isn't statute barred as you've been paying it, therefor it could still be taken for a CCJ and secured on a property when you buy one.

That would be worst case scenario - whether that is likely to happen will, I guess come down to if capquest were to do a random check because they're fed up with your token payments and spot you managed to get a mortgage... then they might push for more.

If you have cash in the bank I would seriously try to look at settling this as a full and final offer - if the debt is still £20k I would try offering maybe £5k as a full and final - especially if you're making tiny token payments - they might take that and be ecstatic!

Littlechris86

Regarding the 2k odd which I would like to settle and also have removed from my credit score as a default moving forwards can anybody point me in the direction of some reading on offering a final settlement? How feasible would it be to pay say £500 and have the debt fully cleared from my record? Is there any benefit to paying it all off regarding my credit score or has the damage been done with the defaults since 2011?
Thank you once again.

sourcrates

Littlechris86 wrote: »

Regarding the 2k odd which I would like to settle and also have removed from my credit score as a default moving forwards can anybody point me in the direction of some reading on offering a final settlement? How feasible would it be to pay say £500 and have the debt fully cleared from my record? Is there any benefit to paying it all off regarding my credit score or has the damage been done with the defaults since 2011?
Thank you once again.

Hi,

You can make an offer to settle yes.

Don't expect them to remove the default though, if accepted, your account would be marked as partially settled.

Credit score is irelivant, it's credit history that's important.

Template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Info here :

https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

National_Debtline

Hi

I just want to emphasise that if you make a settlement offer using the sample letter sourcrates linked to, make sure the creditor confirms their acceptance in writing before you make the payment.

James
@natdebtline