Settlement Offer

Cameronstewart

I really dont know what to do . I had a credit card with nationwide which the default date is 24/9/15.

I am paying £130 back a month and there is still over 2k to pay. I cant really increase these payments at the moment. Wescot have written to me offering me a settlement of £500. I know this will negatively impact my credit rating but the idea of not having this debt to pay is very tempting.

I plan to buy a house with a joint mortgage with my fiance (great credit history) and don't want to do anything that may stop this.

I don't have a great credit history, a number of defaults etc, however I am seeing an improvement since I got a credit building credit card , just putting about £100 on each month and paying it off in full.

I just dont know whether to take the settlement figure, move on and try to rebuild my credit score or whether to continue with my monthly payments?

Any help would appreciated

[Deleted User]

A settlement will have a positive impact on your credit history. The damage was already done by the default.

Anything your credit score does in reaction to it is irrelevant.

Cameronstewart

Ah ok. My thinking was, like you say, I have had a default regardless , but I thought if I ever went for credit in the future, at least I have paid the debt I got myself into after my default, rather than getting the default and on top of that didn't repay the debt I owed. I didn't know if this was even more of a hit on my credit score.

[Deleted User]

As above - your credit score can do down, up, or out to the pub for a few drinks, a curry and a fight in the car park. It doesn't matter, as no one sees it and it doesn't mean anything.

Lenders prefer to see the you have settled your debts, on whatever basis.

Cameronstewart

Ok thanks , I totally understand and appreciate the advice. Looks like I will take the settlements figure