settled or part settled does it matter?

mademistakes01

if you have defaults on your credit file and you come to an agreement that pays off the debt at a discount settlement for example ...you owe £1000 but a settlement is £700 and you pay that amount,i believe it shows as part settled on your credit file does that have a negative affect on your credit score for now and the future? is it better to pay off the full amount in full so it shows as settled?

[Deleted User]

Nothing affects your credit score since it’s made up.

It will show to lenders that you didn’t manage to settle a debt in full however and that may put them off slightly

PixelPound

You have defaulted, which is the major thing - a partial settlement can look worse than fully satisfied as you haven't been able to clear the debt, but either way you have a defaulted debt that's on their for six years. Arrangement to pay is to clear your debts, if they will accept partial settlement, it means you can clear more debts - or are you now in a position to clear debts?