poor credit rating advice needed

FUrake

Hi, my credit rating has plunged in the last 7-8 months due to certain circumstances I couldnt help, basically got a question and need some advice if anyone knows the answer, so I have 2 defaults on my file in the last 4-5 months, one for a current account and one for a credit card, both of which im now in a monthly repayment plan, I also have 2 personal loans with not much remaining to pay on each (both under £1000), im behind on both but the providers both agreed to extend these loans for me but said the arrears would be noted on my credit file, now one of these has offered me a discount to settle the loan in a one off payment but has told me it would be registered on my credit file as "satisfied" instead of "settled" basically what im wondering is because I have these 2 defaults on my account is it worth me taking this discounted offer as my credit rating is already RIP or should I still look the clear the balance in full so it goes down as "settled", at this point does it matter as I will have the defaults on my file for 5 years I think? is that correct

[Deleted User]

You don’t have a credit rating or score so stop fretting over it.
Lenders only see your credit history.

Yes a satisfied debt looks “worse” than a settled debt but a settled debt looks better than one being paid off and marked every month

FUrake

yeh but with the 2 defaults already there does it make a difference if I take their offer of a reduced payment to settle the debt?

[Deleted User]

The important thing is to settle.

Take the offer.

SlovakianGuy

FUrake wrote: »

I will have the defaults on my file for 5 years I think? is that correct

As far as I know, it will stay there for 6 years.

[Deleted User]

5 in Scotland
6 in England

sourcrates

!!! wrote: »

5 in Scotland
6 in England

Defaults stay on your credit file for 6 years in all of the UK.

Your mixing up defaults with the limitations act, two separate things entirely, limitations period in Scotland is 5 years, rest of uk it’s 6.

Easy mistake to make though.