We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Which is better
myotai
Posts: 102 Forumite
Hi,
Three adverse things on my file (that I can see anyways)
Both Default happened around 4 years ago.
Couple of questions if I can:
I am in a position to pay them both defaults in full now OR accept an offer (around 70% less) from the DCA. Which would have a more positive affect on my credit rating going forward?
Thanks....
Three adverse things on my file (that I can see anyways)
- CCJ will be 6 years old in Nov this year
- £60 Default
- £146 Default
Both Default happened around 4 years ago.
Couple of questions if I can:
I am in a position to pay them both defaults in full now OR accept an offer (around 70% less) from the DCA. Which would have a more positive affect on my credit rating going forward?
Thanks....
0
Comments
-
Paying in full will always look better than a settled figure - remember you want lenders to give you money, why would they want to do that if you have previous form for borrowing and not repaying all the money?
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
0 -
Paying in full will always look better than a settled figure - remember you want lenders to give you money, why would they want to do that if you have previous form for borrowing and not repaying all the money?
Thanks,
Just wondered. I gather this would have a positive affect on my report? There doesn't seem to be anything else I can see and once the CCJ drops off I am hoping my credit viability will be much improved - or am I being naive here?0 -
An applicant without a CCJ looks better than an applicant with a CCJ.0
-
Neither looks good for your rating since you don't have one.
However paying off in full will look better to lenders0 -
So after 6 years the CCJ whether settled or not is no longer an influence on credit viability?0
-
That's correct, after 6 yrs the CCJ will drop off your file paid or not.0
-
...and that has got to be good!
So with fully paid default and no more CCJ's with nothing else adverse on my credit file. I have two credit cards that are being paid on time and an up to date mortgage my credit rating should soar...........
....surely?0 -
I think soar is being over optimistic, it will improve, and you will have two old settled defaults. You won't be in prime credit card territory quite yet0
-
.I have two credit cards that are being paid on time and an up to date mortgage my credit rating should soar...........
....surely?
Surely not.
The mythical rating will drop, as surely as day follows night, as a CCJ coming off is a key change. But fear not, for the scores are just the meanderings of the CRAs and have no relevance to man nor beast.
Lenders however will view you much more positively.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards