Partial Settlement

Choccyant

Hi

I defaulted on my credit card a few years back and had an external company chasing me. From memory I did set up a reduced payment plan but then stopped paying it. In the end they stopped chasing. The account is showing as ‘partially settled’ on my credit file with a date of December 2018. 

I have no other defaults now on my credit file apart from this one and the defaulted amount is only £800! 

My credit rating is showing as poor and I am keen to improve this. 

If I was to pay this off would it repair my credit file or would it have no benefit now? 

Thanks 

sourcrates

It would show the debt had been paid off, the fact its showing as a partial settlement now, suggests the debt has been sold on.

There would be no great benefit credit file wise, from paying this off now, you would just be lining the pockets of a debt collector.

Your file will heal with time, but paying it would look better from a creditor point of view, depends if you want to get into more debt, or not.

Choccyant

Thank you 😊 

I’m hoping to take a lease car agreement and also a mortgage in the future so I need to improve my score. 

I’m not sure how else to do it. I will be waiting until Dec 24 until it falls off my credit report. 

sourcrates

Its your history, not your score, you need to improve, the score is just a marketing tool, its the information recorded on your file that`s important, so not missing payments, staying within limits, no defaults, or judgements etc, that kind of thing.

Choccyant

See I’ve been doing all of that for the past few years but it’s not changed I’ve taken out credit cards to help improve my history. I make my payments on time etc so not sure what else I can do. 

Thrugelmir

Choccyant said:

I have no other defaults now on my credit file apart from this one and the defaulted amount is only £800! 

Non payment of debt is a reflection of the attitude of the borrower. Something that is factored in when finance companies consider advancing credit of any kind. If it's only £800! , why haven't you bothered paying it back previously. Rather than waiting until it becomes an inconvenience/issue to yourself. There's rarely any free lunches in this world.

sourcrates

One default is enough to be rejected for most lines of credit.

Again, ignore the number, it goes up and down at whim, once the default drops off your file, things should improve, but don`t expect the number to change all that much.

GeordieGeorge

Choccyant said:

Hi

I defaulted on my credit card a few years back and had an external company chasing me. From memory I did set up a reduced payment plan but then stopped paying it. In the end they stopped chasing. The account is showing as ‘partially settled’ on my credit file with a date of December 2018. 

I have no other defaults now on my credit file apart from this one and the defaulted amount is only £800! 

My credit rating is showing as poor and I am keen to improve this. 

If I was to pay this off would it repair my credit file or would it have no benefit now? 

Thanks 

It will have a benefit and will also remove the possibility of court action being taken against you for recovery.

Despite this not being a fashionable view, it’s also the right thing to do.

Choccyant

Thrugelmir said:

Choccyant said:

I have no other defaults now on my credit file apart from this one and the defaulted amount is only £800! 

Non payment of debt is a reflection of the attitude of the borrower. Something that is factored in when finance companies consider advancing credit of any kind. If it's only £800! , why haven't you bothered paying it back previously. Rather than waiting until it becomes an inconvenience/issue to yourself. There's rarely any free lunches in this world.

At the time I had a large amount of debt which unfortunately I wasn’t in a position to pay. It is only now that I’ve realised how small the amount is. But thanks for the judgement 😘

I am quite happy to pay the debt off however I am unsure who to pay as Barclaycard sold the debt on and the debt collection agency have closed the account. 

phillw

Partially settled is also used if you make a full and final offer, I don't think you can do much apart from wait for 6 years for it to disappear.

[Deleted User]

A debt that is paid off, albeit late, still looks better to future lenders than a debt that isn't paid off in full.
Would you lend to someone who has a record of not paying back? 
Leasing might be easier to get as they can always take the car away again but your mortgage won't be simple with that history