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What does a Neutral statues or flag mean on your credit file
Da7thSon
Posts: 5 Forumite
Hi all, I'm almost at the end of my car PCP, and given the value of the vehicle it makes more sense just to hand it back rather than part-ex it.
Ive had a chat with VW finance, and while my PCP ends in March next year, they have said that as I am over 50% of the settlement, then i can hand the car back now any time now without penalty but this would have a Neutral status added to my credit file. OR i can wait until March and hand it back then, and it would show as a positive status.
What does this Neutral status adding to a credit file actually mean in real terms? Is this a bad thing, and would it affect me long-term? Also, if it is a bad thing, even though it's called neutral, how long does it take to clear off my credit file?
Thanks
Ive had a chat with VW finance, and while my PCP ends in March next year, they have said that as I am over 50% of the settlement, then i can hand the car back now any time now without penalty but this would have a Neutral status added to my credit file. OR i can wait until March and hand it back then, and it would show as a positive status.
What does this Neutral status adding to a credit file actually mean in real terms? Is this a bad thing, and would it affect me long-term? Also, if it is a bad thing, even though it's called neutral, how long does it take to clear off my credit file?
Thanks
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Comments
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Never heard of a neutral flag. Never seen flags just factual info as in no missed payments, account closed etcDa7thSon said:Hi all, I'm almost at the end of my car PCP, and given the value of the vehicle it makes more sense just to hand it back rather than part-ex it.
Ive had a chat with VW finance, and while my PCP ends in March next year, they have said that as I am over 50% of the settlement, then i can hand the car back now any time now without penalty but this would have a Neutral status added to my credit file. OR i can wait until March and hand it back then, and it would show as a positive status.
What does this Neutral status adding to a credit file actually mean in real terms? Is this a bad thing, and would it affect me long-term? Also, if it is a bad thing, even though it's called neutral, how long does it take to clear off my credit file?
Thanks2 -
Likewise never heard of this. So what's the benefit to you otherwise of handing it back early? Can you do without a car for 6 months?I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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The next car i get would be cheaper to insure, run and the monthly repayments would be less. So, handing it back 5 months early would save me money.0
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These are the options to mark your file on credit karma.
OKMissed paymentNo dataDefaultedPayment HolidayArrangement to pay
Neutral status would be defined as "no data" so just a line instead of a tick.
Not positive, nor negative, so no effect on your credit file whatsoever.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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