Partial settlement on agreement - how does that affect credit rating?

suestew

Hi all, other half has an outstanding amount on finance agreement for car, they have offered a discount to settle it which is very good.  They state they will accept this as full and final settlement and that they will  update his credit file to reflect that the account has been settled, but added he should note his credit file will be updated to reflect that you have paid a partial settlement to close your account. 

My question is, will the partial settlement reflect badly on his credit score?  He has a bad score and wants to build it up again so though I would ask the question on here. 

Fighter1986

It depends if the account is currently in good order, or if they have previously issued a default notice on the account.

If it's defaulted, then settling the account will be a good thing whether or not it's a partial settlement, but it will continue to have an adverse effect on his credit rating for six years from the original default date.

If the account is currently in good standing, then having a partial settlement marker against it will have a detrimental effect. 

suestew

Fighter1986 said:

It depends if the account is currently in good order, or if they have previously issued a default notice on the account.

If it's defaulted, then settling the account will be a good thing whether or not it's a partial settlement, but it will continue to have an adverse effect on his credit rating for six years from the original default date.

If the account is currently in good standing, then having a partial settlement marker against it will have a detrimental effect. 

Hi that's great thanks for the reply