We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Part settlements

Options
I am looking to part settle my credit card they have informed me it will remain on file for 6 years as part settled. Do this have an effect on obtaining more credit ie mortgage in future. Just want to add this has not defaulted at all just wanna to get it paid off 

Comments

  • CliveOfIndia
    CliveOfIndia Posts: 1,630 Forumite
    First Anniversary First Post Name Dropper
    Options
    Yes, a partial settlement will be recorded on your credit history.  Whilst it's not as "bad" as a default, it will still have some negative impact.  How much of an impact will depend on each lender's particular criteria, and will be viewed in conjunction with all other data contained in your file.
  • fatbelly
    fatbelly Posts: 20,962 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    Options
    It's unusual to be offered a partial settlement without a default.

    Your call whether the cost saving is worth the six-year mark
  • Jamesyb123
    Options
    Are there any negative marks late payments or arrangements or anything? Never heard of partial settlement on a non defaulted credit account.
  • DullGreyGuy
    DullGreyGuy Posts: 12,127 Forumite
    First Post First Anniversary Name Dropper
    Options
    Are there any negative marks late payments or arrangements or anything? Never heard of partial settlement on a non defaulted credit account.
    Years ago had a joint account and loan with my then g/friend. When we broke up the joint account was put into my sole name but the loan was left in joint names.

    Two years later or so the bank contacted me saying they were closing my accounts with them and I have to contact them. They wouldnt give me any details other than to say it was due to my Ex and my association to her. No defaults, no missed payments, no late payments but as they were being a pain I decided to be one back and asked what they'd accept to clear the loan and the overdraft. They said they'd offer a partial settlement on the loan but because the current account was in my name alone I had to pay it off in full. 

    I believe she had defaulted on other finance she got after we broke up after losing her job. 

    Agree its a non-standard situation but doubt I'm the only one with a joint credit line with an ex.
  • Laurak1981
    Options
    Are there any negative marks late payments or arrangements or anything? Never heard of partial settlement on a non defaulted credit account.
    2 missed payments that's all 
Meet your Ambassadors

Categories

  • All Categories
  • 344.7K Banking & Borrowing
  • 250.6K Reduce Debt & Boost Income
  • 450.4K Spending & Discounts
  • 236.9K Work, Benefits & Business
  • 610.7K Mortgages, Homes & Bills
  • 173.8K Life & Family
  • 249.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards