Credit card repayment options

Sort_it_2
Sort_it_2 Posts: 3 Newbie
in Credit file & ratings
My credit rating is very poor and has been for a couple of years following divorce. I have one credit card outstanding which is classed as defaulted. I have offered to partially settle the outstanding balance, but just cant match their offer. If i enter into a repayment plan, will that allow my credit rating to increase?. Or, will my credit rating only start to increase once the debit has been paid off ?
Any help greatly appreciated.

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    You don’t have a credit rating or score.
    Lenders do not see the scores or ratings generated by the CRA’s.

    It depends on how they mark the account however.

    The default will drop off 6 years from the date of default, but an AP marker will drop off 6 years from when the last and final marker is added.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    !!! wrote: »
    You don’t have a credit rating or score.
    Lenders do not see the scores or ratings generated by the CRA’s.

    It depends on how they mark the account however.

    The default will drop off 6 years from the date of default, but an AP marker will drop off 6 years from when the last and final marker is added.

    The account has already defaulted.
  • nic_c
    nic_c Posts: 2,928 Forumite
    Name Dropper First Post First Anniversary
    Have they agreed the settlement can be paid off via a plan? The debt would be marked as partially satisfied once paid the settlement figure and it falls off after 6 years from the date of default. Bear in mind that many settlement plans have the caveat that missing a payment breaches the terms and the full debt is liable.
  • Sort_it_2
    Sort_it_2 Posts: 3 Newbie
    They want me to enter into a repayment plan, but I haven't as yet. Are you able to advise from which date would the 6yr period commence?.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    The date of default
  • Sort_it_2
    Sort_it_2 Posts: 3 Newbie
    Thankyou for all your responses
This discussion has been closed.
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