how long before paid off debt is removed from credit file

Teatree

I have outstanding mortgage arrears due to selling at a shortfall. It's £11,000. The company have contacted me offering to settle the debt for £3000. I don't have any savings or 'assets', I'm retired and living in a rental home now.
I have been trying to find somewhere cheaper to live but keep on being refused when the credit check is done and I'm wondering if this is the reason why.
My family say they may be able to help me with this, but before comitting, I'd like to know if, after paying it off, will it stay on my credit file ? if so for how long ? and will it still be taken into account even though it will have been paid off.
When applying for a property, credit checks cost a lot of money and I can't keep paying for them.
I checked my own rating with Experian online, and I was 991 out of 999, now if that's true, I must be a good bet ! not a bad one.
Any advice/comments please ?
Thank you in advance.

[Deleted User]

The balance would be updated in the next month's report.

The arrears would show for 6 years.

You're not a good bet, because you have mortgage arrears. Unfortunately your credit score is a made up number provided by a company that doesn't lend money.

That's why the credit scores are not seen or used by anyone else.

Teatree

Does that mean that even though it would be paid off, it would still appear that I had arrears in a credit search ?

Westminster

Yes that is what it means.

National_Debtline

Hi Teatree


If a default has been registered for this debt, it will be removed from your credit file 6 years after the date of the default. That is regardless of how you choose to deal with it now. If no default has been registered, the debt will be removed 6 years after the date the account is closed.


If you make a full & final settlement on the debt the account will be closed, your credit file will show the debt as partially satisfied and a zero balance outstanding.


Also bear in mind when landlords and letting agents carry out a credit check, they only have access to public information, such as if you've had any CCJs or been made bankrupt in the last 6 years. I hope this helps.


Susie
@natdebtline

cjmillsnun

National_Debtline wrote: »

Hi Teatree


If a default has been registered for this debt, it will be removed from your credit file 6 years after the date of the default. That is regardless of how you choose to deal with it now. If no default has been registered, the debt will be removed 6 years after the date the account is closed.


If you make a full & final settlement on the debt the account will be closed, your credit file will show the debt as partially satisfied and a zero balance outstanding.


Also bear in mind when landlords and letting agents carry out a credit check, they only have access to public information, such as if you've had any CCJs or been made bankrupt in the last 6 years. I hope this helps.


Susie
@natdebtline

Does that apply to mortgage arrears?

National_Debtline

cjmillsnun wrote: »

Does that apply to mortgage arrears?

Hi cjmillsnun


The OP states they have mortgage arrears due to selling at a shortfall. It's not clear whether they were already in arrears at the point the house was sold, or they were up to date but they have a debt because the property did not sell at a high enough price to cover all of the mortgage.


If mortgage arrears did exist prior to the sale then these should have been recorded on the credit file, and it is likely a default would have been registered. In some cases a mortgage shortfall debt will be recorded as well. The OP will need to check their credit file with all 3 agencies to see exactly what is showing.


It would also be worth them questioning why they have been declined tenancies to get a better understanding of the situation.


Susie
@natdebtline