We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Very old loan - better to settle?
Options
Hi all
my first post here!
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
0
Comments
-
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.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.1K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards