PRA Settled Debt, how to improve credit rating.

Rovertime69

Hi, I had an issue with misuse of a particular credit card by a 3rd party. When push came to shove, the debt was passed to PRA, and I negotiated a final settlement with them. the majority of the debt was interest, which I objected to paying. However, I made a significant one off payment, which they were very happy to accept. Generally my handling of money has been excellent. 

I hadnt appreciated the effect this would have on my credit rating, and in certain circumstances, it is making my financial life difficult. 

Is there any way of erasing the record of the debt, or improving my credit rating? it seems to be fluctuating somewhat at present, despite my finances being in good order. 

Brie

Glad you managed to sort this debt out - it must be a big relief to you.

As for your credit rating - don't worry about it as no one sees it but you.  Banks etc don't see it as they look at your credit history. 

Now the settlement will be noted on the history and there's no way to erase that as it's correct.  So basically you just have to wait for that to drop off in 6 years time.  

What you need to do is look at your history and see if there's anything else that can be fluffed into shape.  Too many credit cards getting minimum payments?  Too many other credit agreements - phone contracts, car or house insurance?  Are you on the voter's register ? (if you are that shows stability)  Moving too often? (if yes that's instability).  

You might post a statement of accounts (SOA) on the debt free wannabe board so people can make suggestions about how to get your budget into shape as that might help too.

But - as a positive - as that settled debt fades with time it will be less obvious to potential creditors and how it was dealt with will be less of a concern.

Rovertime69

That is very helpful Brie, thanks. 

The issue relates to me attempting to raise finance within a business. I suspect the actual nature (unpaid CC then debt agency deal) of the default is visible, but obviously without any explanation for how it arose. 

Nasqueron

Rovertime69 said:

That is very helpful Brie, thanks. 

The issue relates to me attempting to raise finance within a business. I suspect the actual nature (unpaid CC then debt agency deal) of the default is visible, but obviously without any explanation for how it arose. 

You could approach the lender and explain things but for some, the default or late payments etc are a no-no regardless of whatever explanation you give.

Rovertime69

Nasqueron said:

Rovertime69 said:

That is very helpful Brie, thanks. 

The issue relates to me attempting to raise finance within a business. I suspect the actual nature (unpaid CC then debt agency deal) of the default is visible, but obviously without any explanation for how it arose. 

You could approach the lender and explain things but for some, the default or late payments etc are a no-no regardless of whatever explanation you give.

Many thanks, I have provided some detail We will see. 

MattMattMattUK

Rovertime69 said:

Hi, I had an issue with misuse of a particular credit card by a 3rd party. When push came to shove, the debt was passed to PRA, and I negotiated a final settlement with them. the majority of the debt was interest, which I objected to paying. However, I made a significant one off payment, which they were very happy to accept. Generally my handling of money has been excellent. 

I hadnt appreciated the effect this would have on my credit rating, and in certain circumstances, it is making my financial life difficult. 

Is there any way of erasing the record of the debt, or improving my credit rating? it seems to be fluctuating somewhat at present, despite my finances being in good order. 

If your card was used fraudulently you should not be liable for any costs unless you were willfully negligent.

MEM62

MattMattMattUK said:

Rovertime69 said:

Hi, I had an issue with misuse of a particular credit card by a 3rd party. When push came to shove, the debt was passed to PRA, and I negotiated a final settlement with them. the majority of the debt was interest, which I objected to paying. However, I made a significant one off payment, which they were very happy to accept. Generally my handling of money has been excellent. 

I hadnt appreciated the effect this would have on my credit rating, and in certain circumstances, it is making my financial life difficult. 

Is there any way of erasing the record of the debt, or improving my credit rating? it seems to be fluctuating somewhat at present, despite my finances being in good order. 

If your card was used fraudulently you should not be liable for any costs unless you were willfully negligent.

Exactly this.  @Rovertime69 Did you report this as fraud?