Will full & final settlement (partial payment) damage my credit score?

CCS

Hi everyone,
Step Change have advised that I can offer my creditors a full & final settlement figure as I will soon be in a position to pay back 71% of my total debt.
I have 5 defaults in total - the last one dropping off after 6 years in 7 months.

What I would really like to know is should I jump at the chance to become debt free or wait until i can pay 100% to the numerous creditors?

My main concern is recovering a healthy credit score as soon as possible.

Does anyone have any experience in this or can offer advice?

Many thanks

sourcrates

Hi,

Your credit score is irrelevant here, its a made up number and has no real use at all.

Its credit history thats important, if you only have 7 months till your defaults drop off your file, it makes no difference if you settle them in full, or save some money and partially settle them, except to your bank balance that is.

My advice, for what its worth, get the very best written deal you can to settle and save yourself as much money as possible.

In 7 months time no one will care, as it wont show on your file.

CCS

Thanks Sourcrates - This was my initial understanding but I am sure I read somewhere that mortgage lenders could look into my report in more detail and see partial payments and can refuse to offer you a mortgage on that basis.

Really don't want to make any schoolboy errors when I am so close to getting out of this hole I have been in for the last 6 years.

sourcrates

Once the defaults have gone, they are gone for good, and no one can see them.

They wont even know you had any debts let alone how they were repaid.

CCS

Brilliant thanks so much. Lets just hope they say yes to the settlement!