Shell Energy payment plan

SuffolkCredit

I have a final bill from my previous tenancy which is circa £5000. I can’t pay this off in 12 
months but Shell have offered me a payment plan over 36. 

When discussing this with the agent there he advised that if I spread over 36 months that may affect my credit score/ status and affect my chances of a mortgage. This was because it was over a longer term than 12 months. 

I confirmed that this wasn’t a DMP but I’m concerned it may have an adverse effect on my credit file. 

Am I being overly concerned for no reason?

MorningcoffeeIV

Any arrangement is going to generally be interpreted as a negative by a mainstream lender.

SuffolkCredit

I understand that but will it show almost similar to a credit agreement? 

MorningcoffeeIV

If it appears on your credit files, it's a credit agreement.

la531983

I suppose it doesnt matter what it will show as unless you can clear it off in one go, the ball is very much in their court and you will have to suffer the credit file consequences (if any)

SuffolkCredit

MorningcoffeeIV said:

Does it appear on your credit files?

Right now it shows as an entry with a balance, no late payments etc

Brie

Your credit history will show the amount owed and then monthly payments reducing that amount.  That will reflect well as it shows you are a responsible individual.  If the amounts paid are random that will be less well received.  

Do you agree that you owe the £5k?  That's a lot to owe and may have accumulated over more than 1 year.  Would restricting the amount to the last 12 months use only make a difference?  If you had not been billed then there may be some way to negotiate a lower amount but that will depend on your circumstances.