Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Puzzledbyadream
    • By Puzzledbyadream 17th May 18, 9:41 PM
    • 28Posts
    • 80Thanks
    Puzzledbyadream
    Defaulted Credit Card - how bad is a partial repayment for credit rating?
    • #1
    • 17th May 18, 9:41 PM
    Defaulted Credit Card - how bad is a partial repayment for credit rating? 17th May 18 at 9:41 PM
    I have a card which is in default and has been for a year. I am currently paying a small amount each month but saving up to pay the amount in full, but am struggling to save up the last few hundred pounds. Considering that I may wish to apply for a mortgage in the next 5 years, how risky is it to agree a partial repayment with the debt collection company? I can't seem to work out if I'm better doing it that way or waiting until I have a bit more money (probably October) and paying the card off in full. I know it'll take 6 years for it go off my record, but how much better would it look to pay it in full?
    February No Spend Days Target: 10

    Money to pay for 10 weeks of driving lessons: 75/210
Page 1
    • zx81
    • By zx81 17th May 18, 9:47 PM
    • 18,674 Posts
    • 19,938 Thanks
    zx81
    • #2
    • 17th May 18, 9:47 PM
    • #2
    • 17th May 18, 9:47 PM
    Once you've defaulted, any settlement will look better.

    You may as well take any offer they give you, as long as you get it in writing that they will not pursue you for the remainder.
    • binaryuniverse
    • By binaryuniverse 17th May 18, 9:48 PM
    • 766 Posts
    • 479 Thanks
    binaryuniverse
    • #3
    • 17th May 18, 9:48 PM
    • #3
    • 17th May 18, 9:48 PM
    Any kind of default, fully settled or otherwise, on your file is going to give a mortgage lender the jitters. You'd better off waiting until it has dropped from your file before applying.

    Personally, I'd go with what is going to save you the most money.
    • T-G-C
    • By T-G-C 17th May 18, 11:35 PM
    • 358 Posts
    • 172 Thanks
    T-G-C
    • #4
    • 17th May 18, 11:35 PM
    • #4
    • 17th May 18, 11:35 PM
    It won't increase your creditworthiness either way, but will demonstrate to lenders that responsibility was taken to sort out the mess accumulated from bad financial decisions.

    In this industry, time does heal and provided the debt is cleared, after some time, the harsh effect will fade, even before it falls off. You won't be getting the top mainstream offers anytime soon, but one step at a time is the right attitude to have on this.

    Good luck with everything
    All advice provided is intended for guidance purposes only. For specialized debt advice, please contact either National Debtline or StepChange.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,541Posts Today

8,211Users online

Martin's Twitter