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Old debt, reappear on credit file once settled?
MoneySaverUKMainland
Posts: 4 Newbie
Hi all,
I shall be applying for a mortgage with my partner in Feb as a first time buyer and I have a question.
I have an old credit account from a buy now pay later purchase with black horse approximately 11 years ago, which was also passed on to several collection agencies over the years with a fixed £20 a month coming out of my credit account ever since. This fixed payment has probably been in effect for 9+ years now and is nowhere to be seen on my report.
People are telling me that its best to pay off all debts before I apply. However, I am concerned that if I settle the debt now (1.2k outstanding), then it will re-appear on my credit report.
Furthermore, there is £20 going out of my current account for the recovery company on my bank statement. This is the same account that my pay goes into, therefore bank statement might be looked at by lender (i am aware that this isn't always asked for).
The way i see it i have three options:
1) Change the payment account so that the repayments are no longer shown coming out of my current, pay it off in full after i obtain the mortgage.
2) Leave the repayments as they are, then pay it off in full after i obtain the mortgage.
3) Pay the amount in full now and settle the account
Other than this I currently have a good salary, 999 experian, 475 equifax and 613 callcredit scores. Have 0 defaults or CCJs on file in the last 6 years, electoral roll at the same address for 5 years and a balance of 0 on both my credit cards.
Looking forward to your replies.
I shall be applying for a mortgage with my partner in Feb as a first time buyer and I have a question.
I have an old credit account from a buy now pay later purchase with black horse approximately 11 years ago, which was also passed on to several collection agencies over the years with a fixed £20 a month coming out of my credit account ever since. This fixed payment has probably been in effect for 9+ years now and is nowhere to be seen on my report.
People are telling me that its best to pay off all debts before I apply. However, I am concerned that if I settle the debt now (1.2k outstanding), then it will re-appear on my credit report.
Furthermore, there is £20 going out of my current account for the recovery company on my bank statement. This is the same account that my pay goes into, therefore bank statement might be looked at by lender (i am aware that this isn't always asked for).
The way i see it i have three options:
1) Change the payment account so that the repayments are no longer shown coming out of my current, pay it off in full after i obtain the mortgage.
2) Leave the repayments as they are, then pay it off in full after i obtain the mortgage.
3) Pay the amount in full now and settle the account
Other than this I currently have a good salary, 999 experian, 475 equifax and 613 callcredit scores. Have 0 defaults or CCJs on file in the last 6 years, electoral roll at the same address for 5 years and a balance of 0 on both my credit cards.
Looking forward to your replies.
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