Part settlements 6 February at 2:17PM in Credit file & ratings 5 replies 116 views

Laurak1981

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 

CliveOfIndia

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

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

Are there any negative marks late payments or arrangements or anything? Never heard of partial settlement on a non defaulted credit account.

DullGreyGuy

Jamesyb123 said:

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

Jamesyb123 said:

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