Very old loan - better to settle?

J1one

Hi all

my first post here! 

I have a very old loan (it must be at least 12 years old, probably more like 15) that’s been chugging away on a very low minimum payment for eons. 

I am looking to pay off all my credit so that I can apply for a mortgage. 

So I am wondering, is it a good idea to settle my loan? Will settlement affect my (very good) credit rating? They are offering around £1500 under the current balance of £5500 in order for partial settlement. 

Or is there any other way to proceed? 

Thanks for reading 

[Deleted User]

You'll be in a better place if you clear debts before applying for a mortgage. It will drop your (very good) credit rating, but that's fine. Your CRA credit rating is not a factor in lending, or anything else.

Remember that even if the account does not appear on your files, you'll need to declare it if it's still owing.