Should I pay off defaults when I have CCJs?

stewartwilliams

I wasn't that smart in the past, ignored a few things and due to a job change, didn't pay a couple of things.
I've got 2 paid off CCJs, so maybe 3 years left before they drop off my file.
Also a default for a little over £600 for 3, and one of just over £4k for Vanquis.  Both are with Lowell and neither have any interest etc. being added.  Paying off the 3 account at £10/month, and Vanquis at £25.
Earning a bit more at present in my present job so could pay 3 off immediately and easily put a lot more towards Vanquis, but with the CCJs making any attempt to get credit nigh on impossible, is it worth actually paying off the defaults?  Lowell seem happy with regular payments and don't bother me for more and more, and there's no reason why I couldn't just save the cash and then either let them drop off my record or pay them off in full near the 6 year point.
  

adamp87

It's obviously always better to get rid of them. But the damage has been done with the default, if you pay them off now, they'll be marked as settled, but it has a negligible effect in my opinion (in amongst CCJ's and multiple defaults), depends how old they are and what your future plans are.

Fighter1986

Settled defaults and CCJs will always impact your creditworthiness less than outstanding ones.

You'll still be sub prime for a while but IMHO it's a matter of personal pride. You can afford to clear your debts quicker? Good, get it over and done with. 

stewartwilliams

One thing I forgot to add was having some sort of credit record.
If I were top pay off both defaults, I've no idea if say for the next 2-3 years, would there be anything appearing on my record (other than zero reporting during that period)?
I've got a PAYG phone, monthly car insurance and some life insurance, but don't think there's anything else that might be added monthly to a credit report to show good or bad standing.

Is it just a case of waiting until everything drops off and then having to start from the bottom again?

nic_c

Credit files show the last six years, so when those drop anything newer, like non-defaulted accounts you are paying, will still show some history (that's if say the car insurance reports,most don't).

Just to clarify the opening post, you would still owe the debt when they drop off your credit file. Of course if there is no interest then putting spare money into savings and paying the debt off should be fine, even if current rates are low. 

there's no reason why I couldn't just save the cash and then either let them drop off my record or pay them off in full near the 6 year point.

stewartwilliams

Decided to pay the smaller default off today, so hopefully that's sorted now.  Will look at the larger remaining one and see how long is left and evaluate from there.
Already had a free Experian trial, so they'll probably charge me £14.99 to look at my credit file online (got the free credit score one that shows I have one of their pointless "magic 8-ball generated scores" of 575 or something like that.  Means nothing I know, and my chance of getting even a sub-prime credit building card seems to be 0% from a quick look - not that I want or need a card at this point in time, or for the foreseeable future)

[Deleted User]

stewartwilliams said:

Decided to pay the smaller default off today, so hopefully that's sorted now.  Will look at the larger remaining one and see how long is left and evaluate from there.
Already had a free Experian trial, so they'll probably charge me £14.99 to look at my credit file online (got the free credit score one that shows I have one of their pointless "magic 8-ball generated scores" of 575 or something like that.  Means nothing I know, and my chance of getting even a sub-prime credit building card seems to be 0% from a quick look - not that I want or need a card at this point in time, or for the foreseeable future)

You can access your Experian data free via the MSE credit club, same as Equifax via the free ClearScore and Nodde/TransUnion via Credit Karma

stewartwilliams

Do payments being made show up on your history?  I had a look at Clearscore and not a single payment is showing since the date of default.  
Nothing saying that the CCJs are satisfied either, or do I have apply for a certificate of satisfaction for that? (which costs £££?)

stewartwilliams

Added:
Does "discharged" refer to the date a CCJ was paid off?

dranzer01

nic_c said:

Credit files show the last six years, so when those drop anything newer, like non-defaulted accounts you are paying, will still show some history (that's if say the car insurance reports,most don't).

Just to clarify the opening post, you would still owe the debt when they drop off your credit file. Of course if there is no interest then putting spare money into savings and paying the debt off should be fine, even if current rates are low. 
there's no reason why I couldn't just save the cash and then either let them drop off my record or pay them off in full near the 6 year point.

so when a ccj drops off of your credit file after 6 years (you still need to pay that debt?). So how is the company going to still be in contact with you? Do they know six years has past and so they will re-contact you again? What is the situation/scenario there?

Nowadays on experian, there is a credit score trajectory, whereby it shows you what your score will be in 3-6-9-12-15-18-24 months.

I personally have a ccj and the trajectory shows after 1 year my credit score will be 999 - so i too would like clarification on that as well

nic_c

dranzer01 said:

so when a ccj drops off of your credit file after 6 years (you still need to pay that debt?). So how is the company going to still be in contact with you? Do they know six years has past and so they will re-contact you again? What is the situation/scenario there?

Nowadays on experian, there is a credit score trajectory, whereby it shows you what your score will be in 3-6-9-12-15-18-24 months.

I personally have a ccj and the trajectory shows after 1 year my credit score will be 999 - so i too would like clarification on that as well

Well the company (the Claimant) will have requested the CCJ from the Court and will have your address (or an address) that they gave to the Court. If it goes past 6 years, they don't suddenly lose your address!! They know when the CCJ was issued because the Court informs all parties once the Judgment has been issued e.g. you (the Defendant) and the company.

If you are saying you have a CCJ and the company hasn't contacted you for 6 years, and then suddenly do, well after 6 years they'll have to convince a Court why they haven't collected the money and why any further action should be allowed. Doubtful, so you are probably safe.

However, if you get a CCJ that will take a few years to pay, and maybe lowered payments so that it would take 10 or 15 years, but stop paying after 5 years and 11 months thinking you'll get away with not paying the rest once it's fallen off your credit file, you'll be sorely mistaken. Whilst they cannot get a new CCJ for the same debt they could show your payment history and state how they accommodated your affordability but then you stopped paying once it fell off your credit file and despite numerous attempts to contact you, the balance remained unpaid. In that situation the Court is highly likely to allow enforcement action and costs of that added to the balance. Maybe they'll issue a bailiff warrant, or maybe an attachment of earnings, and costs will be added.

In terms of the Attachment of Earnings, they don't need to know your employer, it's the Court that ask for that, and if you refuse, the Court can issue a Court summons for you to attend court and provide it and even ultimately a jail sentence if you continue to refuse to provide information.

As to the rest, ignore the score its a marketing gimmick, it's the contents of your report that matters. The Credit Score Trajectory sounds like another gimmick to make you part with money.