Default and settled defaults

Poppyf13

Am I right in thinking that a default that's settled it's still just as bad as a default unpaid credit score wise? It will stay on there for 6 years? I have a debt management plan and a debt not on it (which caused a default) I was going to pay the one that caused the default off in full but if it won't change my credit score that much I'll just add it to my plan?

[Deleted User]

It's not as bad. But the DMP is the major factor.

Ignore any change it makes in your credit score. Think about the wider picture of how your credit files look.

markie49

I was in a formal arrangement with Barclays to £80.00 permonth with no interests etc added this worked great and enabled me to get my stupidly large credit card debt down from £9000 to £6000. Barclays have told me that this arrangement has come to an end and that I have to start paying my agreed minimum level of £135 permonth which will make the interest go up. If I continue to pay the £80 Barclays will serve a default notice on me which will be on my credit rating for 6 years- any advice?
.

[Deleted User]

At that rate of payment, I'd have thought a default would be the better option, as it will fall off after 6 years, rather than years more on an arrangement to pay, and then another 6 years on top of that.

markie49

I have a good credit rating but have not been able to get any consolidation loans at a lower rate. The default notice will seriously hinder me getting any credit which I am not getting anyway is there any way of getting Barclays not to serve the default?

[Deleted User]

Ignore your credit rating. It means nothing.

What actually appears on your credit files (all three)? Does the Bcard show as an arrangement?

What else is on there?

The only guaranteed way to stop them applying a default is not to default - ie to make the contractual repayments.

markie49

The Barclays shows as an arrangement, yes- I cant afford the minimum repayments of £135

Poppyf13

I've been using credit score which I know is just basic and it says on it I have no insolvency on my account and very few/no arrears on my account. Which I thought was odd.

So would you just advise to add the debt that's not on my DMP onto it? I just want to fix my credit as soon as possible

[Deleted User]

Then I'd stand by my first point - your credit history is pretty poor, and a default would at least freeze the interest and set an end date to start to improving your credit files.

markie49

Am I being refused for credit because I have a formal arrangement on my file?

System

markie49 wrote: »

Am I being refused for credit because I have a formal arrangement on my file?

Yes without any shadow of a doubt. It shows that your finances are not up to being able to afford the credit you already have let alone any more and that you have a poor record of meeting your financial obligations.