Improving credit rating?

iwanttoberich

I received a letter from a DCA offering me a settlement figure. The letter states that this will improve my credit rating as my file would show that I settled voluntarily. What difference does it make whether I "settle voluntarily" or pay the debt in instalments until it is finished?

By the way, when I told the rep that I am not in a position to settle, she was happy to continue my arrangement. I just had to increase the payment by a couple pounds.

redpoison

Hi... That is so not true.. in your credit file it will say settled it wont change any defaults or your score...

have you got your credit file?

and why did you have to increase your payment? you didnt have to do that.. if you have an arrangement with them...

Burlesque_Babe

If you settle early, it will be marked as 'satisfied' but it won't be any better than if you pay if off in instalments as it will still be marked as 'satisfied' then.

iwanttoberich

Thanks for the replies. I guess they are just trying to make me pay sooner. When I get a salary increase I try to increase my payments by a pound or two so that I can become debt free sooner.