A reader asked:
My Credit Karma report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed?
What is the difference between Satisfied and Settled?
On credit records, debts which have been repaid in full are:
- shown as Satisfied if a default has been added to the record;
- shown as Settled if there is no default on the record.
On the report above, this is confirmed by the names of the creditors. Motormile Finance is a debt collector – this debt would have defaulted at some stage and then been sold to the debt collector. Provident and Quickbridge are lenders – there may have been late or missed payments on these two debts but no default was added. You can see the full repayment history for each debt by clicking on the purple plus sign.
There are now a large number of ways to look at your credit records and score. Some are free, some paying a one-off charge, others a monthly fee. Which one you should use depends on what sort of detail you want, see What’s the best way to check your credit record for details.
This is how Experian reports this situation. I’ve highlighted two loans, the defaulted one is marked Satisfied, the non defaulted one is marked as Settled:
A debt which has been closed with an agreed full and final settlement will be marked as Partially Settled or Partially Satisfied.
The difference matters, as it affects your score for different times
There is a big difference for your credit score in future:
- a settled debt will disappear from your credit record six years after the settlement date.
- a satisfied debt disappears sooner, as it drops off six years after the default debt.
If all payments were made on time, then a settled debt is great for your credit score. It shows you borrowed money and repaid it on time – just what future lenders like to see.
But if the settled debt has late payments or arrangements to pay markers, these are going to be showing on your credit record for a long while. If there are a lot of these and they started several years ago – perhaps you have been debt management? – then it may be better if you ask for a default to be added because it will go sooner! See What should the default date for a debt be? for more details.
Poor credit score & want a mortgage
Does a F&F affect your credit score?
Paul says
I have a default from 2015 and was refused a mortgage for my ex council flat. I have until june 2017 to get a mortgage or i lose the right to buy. If i paid this default in full would it come off my report or make my credit history any better ?
Sara (Debt Camel) says
You don’t stand a chance of getting amortgage if you you have an unpaid default on your credit record. Paying the default will not remove it, but paid is better than unpaid! You need to talk to a broker to see if you have a chance of getting a mortgage by June.
Paul says
Hi June
Thanks for the fast reply really appreciate it. My default is 1539 pounds so if I paid that off even if I tried to get a mortgage in June I probably wouldn’t be accepted ? The reason I want to know is I will be giving the flat up as I don’t stay there so I am paying full rent for nothing. I spoke to a broker he said because the default is so recent nobody will touch me .
Sara (Debt Camel) says
Giving what flat up?
The normal rule of thumb is that mortgage lenders prefer a default to be over 3 years old and to have been settled for more than a year. But for a RTB you have such a large deposit that it’s worth asking abother broker I would have thought …
Carlos says
Hi Sara
I have paid in full all my default accounts about month ago before that I have been making a substantial monthly payment towards that and now
I need to buy a motorcycle for work and I am thinking of financial it, what would be the change of been accepted ? Taking in consideration my historical.
At the moment my credit is very poor as my default is not showing as payed yet, I have been told that maybe take up to 6 weeks to be reported as payed I am just wondering once it show as satisfying would be possible for a loan of 7or 8 thousand.
Sara (Debt Camel) says
This article look at how fast credit records are updated: https://debtcamel.co.uk/repaid-loan-credit-file/.
Once your deafulted debts have all been updated to say satisfied with zero owing, your credit record will start to improve. How fast will depend what else is on your credit record – are there other accounts with arrears that haven’t been cleared? Do you have credit accounts which have no problems at all that you are repaying each month?
I doubt you are going to be able to get finance on good terms for that large a loan though for a while.
Laura says
Hi Sara
I have a 5 defaults on my credit file, all occurring between Feb and July 2013, and all satisfied March and April 2014. On my Equifax report, the credit history is in amber based on it being 45 months since my last serious payment problem. I’m currently at the top of the “poor” credit history. While I know that the 6 year mark for the defaults to drop off is Feb-July 2019, I’m wondering what happens in between. Does my score improve gradually? As I’m approaching the 4 year point since default, should I expect an improvement after say July? Also, will the number of defaults impact the score (as opposed to just having 1 for example).
I’m saving hard for a deposit for a mortgage, and taking other steps to improve my credit rating, and I’m wondering when I might start to look more appealing to a mortgage lender or I need to wait the full 6 years?
Thanks for your help :)
Sara (Debt Camel) says
The impact of defaults gets less as they get older. As all of your defaults will be over 4 years old from July this year, you will probably see an improvement in August.
Yes the number of defaults affects your score.
BUT mortgage lenders make their own decisions, not based on any credit score being over a certain figure.
As all your defaults are over 3 years old AND they have been repaid for 3 years (well nearly) you may be able to get a mortgage at a reasonable rate from a high street lender. Some banks will just reject you though so you musn’t apply directly to a bank and you may not get the absolute best deal. I suggest you talk to a mortgage broker about what your options are when you are close to having a deposit saved.
Mitchel says
Hi, I defaulted on an account of £155 in 2012 that was sold to Lowell and was due to drop off in 2018, they have now threatened CCJ, if I pay off the total amount today, will I have to wait a further 6 years for it to drop off or will it still drop off in 2018?
Thanks
Sara (Debt Camel) says
It will still drop off in 2018.
Laura says
Hi, I got into difficulty with eon who previously supplied my energy. I was making the agreed monthly payments which as far as I was led to believe was paying money towards debt that was on the account as well as my energy. One month they emptied my bank account with a direct debit of almost £500 which I wasn’t notified about until it came off my account. At that time I was a single parent with 3 dependants. I spoke with many people at Eon and was assured the situation would be rectified which it never was and every offer I made to repay was declined and I was threatened with pre payment metres which I didn’t want. I felt this was really unfair and the result was my original debt doubled and I had no idea until they tried to take four times the normal energy payment. They said I should have been lettered but I wasn’t and still to this day haven’t been. The situation got out of hand and I changed providers. I applied for a mortgage today and was told that an account I had in serious arrears went into default in December and that I won’t be able to get a mortgage. Is there anything I can do about this?
Sara (Debt Camel) says
I think you should go to your local Citizens Advice with all the details and they will help you put in a complaint about this.
Laura says
Thank you for your reply. I was thinking of going to them.
Steph says
Hi, I have 3 defaults on my credit accounts. Two of which I make a monthly payment too, what happens to those 6 years after the default date if I have still not cleared the full balance by then (default end date is 2018)? I currently can’t make a payment to the third account, what happens to that account 6 years after the default date if I have still been unable to make payment to that account?Thanks
Sara (Debt Camel) says
All three debts will drop off 6 years after the default date.
That may sound good, but read https://debtcamel.co.uk/debt-not-on-my-credit-file/ because you can still get CCJs. This is most likely for a debt you are not paying. There were 300,000 CCJs in the first three months of this year. creditors are going to court a LOT more than they used to.
Emma says
Hi Sara,
My partner has 2 defaults on his credit file he knows nothing about them, it appears a family member has taken out catalogue accounts in his name.
We have raised a dispute with the company which they have said will investigate, but can not give a timescale.
We have also requested a notice of correction be placed on his credit file through Noddle.
The name on the accounts are not in my partners full name but his date of birth and address are correct.
Do you think it is likely the company will remove the defaults? Is there anything else you would recommend we do to get them removed?
Thanks
Sara (Debt Camel) says
I recommend reporting the matter to the police (via Action Fraud https://www.actionfraud.police.uk/) and telling the firm the report number you will be given. If the items were delivered to another address, this is a fact that supports your complaint.
You should consider signing up to CIFAS protection to prevent this sort of problem in future, see https://www.cifas.org.uk/pr_for_individuals.
Sam says
Hi Sara
I have a couple of CCJs which I am paying off monthly. They both have default dates back in 2008.
How come these debts have not dropped off my credit file or from trust online as they are now exceeding the 6 year point.
I have noticed that on Equifax they state that if you satisfy a CCJ after a month has passed, the debt stays on your credit file for 6 years from the date of the Judgment…
This is contrary to what you state on this website and quite a few other sites who state that a satisfied debt, if satisfied after a month of the original judgment stays on your file for 6 years from the date of the default.
Can I ask which of the above examples is correct please?
Sara (Debt Camel) says
A CCJ on your credit record is completely separate from the debt record it relates to. This is for two reasons – first the CCJs are obtained from public records (the courts, vie Registry Trust) not the creditor. Second you can get a CCJ for a debt which isn’t on your credit record at all1, for example an amount owed to a builder.
I am guessing what you are seeing is that the debt records were marked as defaulted back in 2008 and are no longer showing as they have dropped off 6 years afterwards. But the CCJs were in the last 6 years so they are still there. They will disappear 6 years after the CCJ date, not the default date for a debt.
“contrary to what you state on this website and quite a few other sites who state that a satisfied debt, if satisfied after a month of the original judgment stays on your file for 6 years from the date of the default.” I don’t think that is what I have written, it sounds very muddled. For example the article above is only talking about debts, not CCJs – there is no reference at all to judgments.
Sam says
Thanks Sara, much appreciated, apologies if I got it wrong
George says
I have 2 defaults that are due to reach 6 years in Oct and Nov this year.
One of the defaults became a CCJ three years ago after they sent all the letters to the wrong address.
I want to pay these off as not quite paid yet. Should I wait until the defaults fall off?
I guess I don’t want them to be there another 6 years.
Sara (Debt Camel) says
They will fall off after 6 years whatever you do.
The advantage of paying the one which doesn’t have a CCJ now is that it stops the debt collector going for a CCJ. If you contact them they may well take a full and final settlement offer so you can save a bit of money? The debt will still disappear in Oct or Nov if you do this.
The one with a CCJ – well the CCJ is there for another 3 years even if you pay it now.
George says
What are the chances of me getting a small mortgage with no other debt and only the ccj with 2 and a half years to go?
Payment history been great for years now
Thanks
Sara (Debt Camel) says
By “small” do you mean you will have a lot of equity? Or that the mortgage is a small amount? Or both?
Jonathan says
“a settled debt will disappear from your credit record six years after the settlement date.
a satisfied debt debt will disappear more quickly, as it drops off six years after the default debt.”
I just wanted to clarify this statement..
I have a debt to pay off £3.5K which is currently 4 years from the previous defaulted date.
So I understand that If settle, say £1.5k, this default history will still stay on my account for 6 more years after the settlement until it completely clears off my history.
But if I fully satisfy the account in full, I only have to wait 2 more years until its completely cleared from my history? As this will be 6 years from the original defaulted date.
So does this default history completely disappear after the original defaulted date? I thought the creditor can see up to 6 years of your history.
Sara (Debt Camel) says
As your debt has defaulted, it will always be marked as satisfied, not settled, whether you pay it in full or partially. It will disappear in 2 years, 6 years after the default date, whether you pay it in full or in part.
David Selbow says
Hi, I have debt with mmf @ ~ £1k and sllcapital @ ~ £250. I received this email from sllcapital earlier today which states “Thank you for providing us with the requested information.
Having reviewed the content of your correspondence, we have decided not to pursue the account any further and have written off the outstanding balance in good faith.
We hope you find our response satisfactory and would appreciate any feedback you may have regarding our handling of this matter for our records.
We wish you all the best for the future and confirm the account has now been closed
May I ask, what does ‘written off the outstanding balance in good faith’ mean? In the context of settled v satisfied?
Sara (Debt Camel) says
It doesn’t change the default that is on the record (I assume) so the debt will be marked as satisfied.
The MMF debt – who was the original creditor?
David Selbow says
There’s 3. Cheque Centres Limited, Think Finance (UK) Ltd t/a 1 MONTH LOAN and CFO Lending Ltd.
Sara (Debt Camel) says
“There’s 3. Cheque Centres Limited, Think Finance (UK) Ltd t/a 1 MONTH LOAN and CFO Lending Ltd.” the reason I asked is because MMF buy a lot of payday loans and I was wondering if you had a case for making a payday loan affordability complaint. Payday loan affordability complaints are discussed here https://debtcamel.co.uk/payday-loan-refunds/ which has template letters. IF you had a lot of payday loan borrowing a few years ago you should be considering asking for refunds of the interest you paid from all the lenders you used, not just the ones where you still owe money. Large numbers of these complaints are being won – if it goes to the Ombudsman there is a 68% success rate.
So your three payday loans:
Think Finance / 1 Month Loan – these are still in business. It is a firm called Elevate – best known at the moment for their Sunny brand name. You can certainly complain about the defaulted loan and any previous borrowing from that lender that you repaid.
CFO and Cheque Centre are currently in administration. You can put in an affordability complaint to them now but you are unlikely to get any money back, but this may still be worth doing as you don’t want the money back so much as the debt with MMF written off. If you can win a case at the Ombudsman against one of these firms, even if there is no money to pay you, this may resolve the debt with MMF. Sorry these two are not straightforward.
David Selbow says
Ones defaulted. I forget which one now, without looking at noddle or c/score. I mean it’s either the sllcapital or mmile that’s defaulted me. Anyway, my main gripe with my current history is that one of the loans I took out in 2013, and it’s still hanging around on my credit file in a state of no action – what I mean is, I’ve had both debts for 4 years, never paying a penny. One defaulted and that’s fine because I know when that will be off my credit file but the other one hasn’t……without that default date, they can just hassle me and hassle me, potentially for ever? Because that’s what it’s looking like atm. – Just updating the credit file to read unsatisfactory… As there’s no default date to start the 6 year clock ticking.
so anyway I’ve just had enough and I’ve decided to draw a line under the whole affair and get the debts written off. Or ‘satisfied’ as the case looks to be.
Sara (Debt Camel) says
“one of the loans I took out in 2013, and it’s still hanging around on my credit file in a state of no action – what I mean is, I’ve had both debts for 4 years, never paying a penny” OK in this case you need to ask for a default date to be added with a date that was 3-6 month after the point you defaulted. See https://debtcamel.co.uk/debt-default-date/ which explains how to do this.
David Selbow says
‘I was wondering if you had a case for making a payday loan affordability complaint‘ – well I don’t think so because I just took the loans out for drugs and didn’t pay back any money. On any of the finance I’ve mentioned. I’m a recovering heroin addict you see, and at the time of the loans, even well before and up to today my lifestyle and finances are VERY chaotic. And I had a serious head injury in 1991 that I’m leaning on at the moment i.e. I’m on the sick kind of long term.
But thank you for telling me I could have a default date added to an entry on my credit file because that particular account has been hanging round since 2012/13 with NO repayments ever, all they do is update it every month with ‘unsatisfactory’. Well that to me is unsatisfactory so I wrote in to mmile and sllcapital yesterday with the following email:
Further to speaking with your operator today, I enclose a letter of medical evidence and ask that this outstanding debt be written off. The reasons for this are: the length of time that the debt has been active; the number of payments that have been received on the account and; the realistic prospect of your recovery of the debt.
I am a heroin addict and have been so for some 15 years. Consequently my lifestyle and finances are very chaotic.
I don’t work due to a serious accident and last worked in 2009.
And I added a letter from my doctor, which clarified that I had a head injury blah blah blah and I couldn’t work.
James says
Hi there!
I have one default on my account for £101 from 2014. This has only appeared back on my credit file in the last couple of months. It is showing as settled in 2015 but still shows the amount of £101 not 0. I have been disputing this debt for years as I don’t believe I owe the money and it is all down to a clerical error 4 years ago… I am trying to get it all fixed but I understand that everything takes time. We have just seen the perfect house and don’t want to lose it. What do you think is the best thing to do?
Sara (Debt Camel) says
does the balance owing show as 0 or £101?
James says
It shows as 101 but still with the status settled.
Sara (Debt Camel) says
Odd – ask the creditor to correct it to zero.
As the default is over 3 years old and it has been settled for more than a year you should be OK to get a mortgage but make sure you go through a broker not direct to a high street lender.
Laura Morris says
Hello,
I am after some advice.
I am currently going through the shared ownership process but have 3 defaults on my account. I have settled 1 this week which will show as settled soon and 1 I was in dispute with as knew nothing about the debt but it has been put as settled. The other one was paid off in 2014 but wasn’t marked as satisfied or settled then. All of these amounts were very small. Under £100.
Our mortgage broker has said that as long as the accounts are showing as settled then it will be ok to carry on with the application.
I think I may be getting confused about the difference between a satisfied default and a settled default. Please can you clarify more. Surely a satisfied default will be ok as well.
Thanks in advance.
Sara (Debt Camel) says
From the point of view of credit reference agency reports, the above article explains the difference between “settled” and “satisfied”. I suspect your broker wasn’t differentiating between them, but you would have to ask him!
Laura says
Hi Sara, I had two defaults with eon which I tried to disputed but didn’t get anywhere! I didn’t do anything and the defaults remained until January this year where they disappeared from my report. Both accounts have appeared again showing the same balances but no default. Are you able to explain to me why this would be? I’m worried they will stamp defaults again and il be back to the beginning again.
Eon is the creditor. They appeared back at owing 0 and no default but changed the following month to having balances on both accounts again but no default.
Laura.
Sara (Debt Camel) says
But the default before were more than 6 years ago? And you have never paid anything to the debts and dispute they are correct for some reason? Is that right?
Laura says
No the default had only been added December 2016 but I didn’t know anything about it until I tried for a mortgage and it got flagged up.
Sara (Debt Camel) says
So at some date (when?) there were two (?) bills which you disputed and didn’t pay.
Then in December 16 one default was added. You found this during a mortgage application. At that point you complain but it wasn’t resolved – did you get a reply from Eon?
Then the debts disappeared in January 2018.
Now the debts have reappeared with balances owing but no default.
Is that right?
Laura says
The debts are from the accounts which on file states begun in 2015 but I believe they were 2013/14 as the dispute went on a very long time until I changed provider and never done anymore about the accounts! Wasn’t the best idea! I haven’t heard anything from eon for a long time either and yes the same balances have appeared on my credit file but aren’t defaulted and appear to be getting updated monthly.
Sara (Debt Camel) says
No, it wasn’t a good idea :(
I suggest you start by sending Eon a Subject Access Request asking for all the personal information they have about you. When you get all that, there should be copies of your earlier correspondence and notes of phone calls.
I suggest you then go to your local Citizens Advice and ask them to help you make a complaint.
Matt says
Hi Sara
I have 6 defaults on my file that have now reached the 3 years old stage, some are satisfied, some not. From your experience, are there any mortgage lenders out there that will lend with old unsatisfied defaults remaining (assuming income ratio and deposit (probably 15%) are acceptable)?
Sara (Debt Camel) says
Not that will give you a good rate. Why can’t you settle these debts if you have a good deposit?
Matt says
Thanks Sara
Some of the unsatisfied amounts are quite high and would wipe out the deposit (even with a discount), i was hoping to move home asap. Is it still possible and what sort of rate would I be looking at please?
Sara (Debt Camel) says
If your debts are much more than your deposit it’s pretty unlikely you will get an offer. Be realistic, why would any mortgage lender want to lend to you? As soon as you have a house with equity, your unsecured creditors may be thinking about CCJs and a charge over your house.
Laura says
Thanks Sara. I will give this a try although the last time I tried to speak with them, they told me that my debt had been passed on to a debt recovery place and I’ve never heard anything else on it. Hopefully I can try and get it resolved, just feels like I’m up against a brick wall no matter what.
Mr Graham Robinson says
Hi i have a loan will i need to have the loan off before i apply for a mortgage.
Experian score is 530 out of 1000 (very poor)
Equifax score is 456 out of 600 (good)
Which one do i believe.thanks
Sara (Debt Camel) says
Neither is “right” or “better”, they are just looking at different data. You need to look not at the scores but at the details of the problem debt showing on both reports. Also get a Noddle report so you can see what is on Call Credit, the third CRA in Britain.
Then read https://debtcamel.co.uk/improve-credit-score-mortgage/ which looks at your situation.
Sally01 says
Hi, I am wondering if you can help. I have a fair credit score on Experian 755 but I have one 2 and a half year old default from Vodafone this was a dispute since it was added however I paid this off just recently so it will show on my report in the next month as satisfied. My partner has excellent credit. We are looking for a mortgage but my family are giving us the deposit as gift. Are we likely to be accepted. This is the only one default and negative factor on my report I have 8 positives and this one negative. I use less than 50% of my credit card and clear this every month too. I have no other debts or credit cards apart from an overdraft Thanks
Sara (Debt Camel) says
This is going to be a problem for you :( See https://debtcamel.co.uk/mortgage-recent-defaults/comment-page-1/
Lauren says
Hi Sarah , I have previously been on a debt management plan that finished in February 2015.
All debts are paid and shown as settled. No defaults were made and the most severe record was number ‘5’ late payment figure. And a note saying the debt was being paid as part of a dmp. Since 2015 I have looked after my finances and have a good score with equifax and an excellent score with Experian. I am in the process of placing an offer on a house and have an agreement in principle with NatWest through a mortgage broker, however I was first declined with Halifax who wanted a higher deposit. Even though I have an agreement in principle I am worried that the application will be rejected due to my past funicular difficulties. What are your thoughts? Thanks
Sara (Debt Camel) says
If your broker knows about your DMP and has suggested NatWest, then 3 years later you should be OK.
Mike says
I had a debt written off by Sainsburys Bank in June 2014. Importantly they have admitted no correctly reporting the debt to credit agencies for over 12 months prior to this. They have confirmed in writing that the debt was written off and they informed agencies that the balance was zero and the account settled 25th June 2014. Then 27 months later they claim to have sold it to a debt company who have now obtained a CCJ by very devious means. I understand the debt can be sold to a third party and that such a sale would satisfy / settle the debt from their point of view. However – the debt was settled and their words “the account closed with a zero balance” over two years before, therefore the sale of the debt cannot be responsible for the closure of the account and settling it with a zero balance. A month before this happened I wrote to them and requested they write off the balance as I had no means of paying further. I am appealing that Sainsburys sold a closed account with a zero balance that had been settled for over two years and that the debt company should be directing their action to them not me. oddly enough, as well as admitting they did not report the debt correctly ahead of the account closing, and that they wrote it off, closed my account and deemed it settled, they also sent me a cheque for £200.00 with the letter – no reason why, just says please find enclosed cheque, a hand written £200.00 cheque from Sainsburys Bank.
Thanks
Sara (Debt Camel) says
“who have now obtained a CCJ by very devious means” which were?
I suggest putting in a complaint to Sainsburys as well as the firm that has got the CCJ.
Mike says
They applied for it and when I contacted them to say ‘what the hell’ basically, I was told (this is the solicitors representing them) that the response pack did not need sending back as they put everything on hold. Then once the deadline expired for returning it they automatically obtained it as I had no responded. I don’t have the funds to fight banks, debt companies and big legal firms but they are also not supposed to advise me whilst representing their client. They advised what to do implying they were some form of arbitration saying they had to wait for their clients response, then obtained it without my knowledge knowing full well I intended to defend it.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about your options about the CCJ. And also put in a written complaint to Sainsburys Bank that they sold a debt they had told you was written off – enclose a copy of the letter from then confirming this,
Mike says
At the moment I am 1 week away from the appeal hearing. My solicitor has just replied to Sainsburys stating that they have sold a written off debt and to explain themselves. But the action is by the debt company. The debt company previously vacated the hearing hours before it was due so they could go back to Sainsburys and ask the same questions. I guess the entire thing hinges on one thing – Can they write off a debt, mark the account as zero balance and closed. Then publish this on my credit file as “settled”, balance “zero” and the original balance then marked as ‘delinquent’. Then over two years later, after I have obtained a mortgage based on that report, sell the account to someone when it has been closed and settled for a delinquent amount. My understanding is they have to sell the debt to settle the account. This did not happen. They wrote it off and confirmed it as closed and zero. Then 27 months later sold the account. (which was closed and zero) to someone else and resurrected the written off debt.?
Sara (Debt Camel) says
what appeal hearing? have you applied to set aside the CCJ?
Mike says
Applied for set aside and or the case to be dismissed
Sara (Debt Camel) says
OK, I suggest you talk to National Debtline on 0808 808 4000 about the set aside urgently. Or you could ask for advice about it on the Legal Beagles forum.
Mike says
Thanks Sara – the main thing I am trying to establish is that I know they can sell the debt under their terms and use this to settle the debt from their side and the debt transfers to the new ‘owner’. But I believe this transaction would need to be before or at the same time as the account is settled. I do not believe they can write it off, zero and close the account, report this to credit agencies as delinquent and settled for over two years then sell it – at its full value. The account they sold had been sat at zero for over two years, marked settled and delinquent. They have put in writing it was written off as they were unable to collect payments. They were also told of a mental breakdown at the time which I believe under the Standards of Lending Practice means they were not lawfully allowed to sell it anyway?
Your help is very much appreciated
Sara (Debt Camel) says
There would seem to be a good chance here that Sainsburys have made some sort of mistake. That is why I suggested putting in a complaint to them. But with a set aside hearing coming up, you need some advice on that, hence my suggestion to talk to National Debtline or post on Legal Beagles.
Mike says
Thats great – I am posting on Legal Beagles now thank you
Zoe says
Hi I have recently checked my credit report with capital one, I have a debt in the settled account section which was originally with very, my original account was opened in 2012 then sold to Lowell around 2 years ago. I was wondering when this will be removed from my credit score? The details I have is
Last Delinquency date 0001 (not sure what 0001is)
End date January 2018
Start date June 2012
The reason is I’m hoping to get a mortgage but credit rating is poor, financial circumstances have improved dramatically as I’m now a qualified nurse with a full time job and my husband owns his own business however unfortunately I don’t think mortgage lenders look at this bigger picture when we will be applying…
Sara (Debt Camel) says
If you don’t think you have repaid this debt, it may have been sold to another debt collector. Have you checked your credit reports with all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/
Zoe says
I haven’t payed off the debt yet no, it got sold to the debt collection agency who agreed to £10 a month for the foreseeable, however with the delinquency date being 0001 I’m confused as to when this may be taken from my account? Thank you for your reply I will check on the link you posted
Sara (Debt Camel) says
It doesn’t sound as though there is a default date, just a missed payment date. In which case it will be on your record for 6 years after it is fully repaid. Check your credit records with all three CRAs. And read https://debtcamel.co.uk/debt-default-date/.
Zoe says
Ahhhh no way…. I might save and see if they will accept a full and final settlement then.
And possibly go to see a mortgage broker regarding a mortgage if we had a good deposit or does the deposit not matter if you have poor credit?
Sara (Debt Camel) says
I think you need to check a proper credit report to see the actual picture before thinking about what your options are.
Zoe says
I actually just checked on the status and it says “default” but no date, I have just registered with 2 of the people you recommend and I need to wait for them to confirm my identity. Thank you for your help
Katie says
Hi, my husband got into some financial difficulty a few years ago, one account he defaulted on was with capital one, although we have paid off the debt in full last year, capital one are refusing to mark the account as satisfied on his credit report even though it shows a zero balance owed. We are applying for mortgages soon and the mortgage broker says this will affect our chances, I was wondering if there was anything we could do?
Thanks.
Sara (Debt Camel) says
Is the card still open? Why are they refusing to do this? I haven’t heard of this happening.
Katie says
No the card was cancelled, they told us that it’s against their policy to mark a default as satisfied. All the other accounts that he defaulted on were paid off in full at the same time and have all been marked down as satisfied but the capital one account is still showing as faulted but with a £0 balance owed when you open the account on Experian. We’re finding it all abit confusing.
Ty says
Hi,
I have 4 defaulted accounts on my file. The total being about £1000 – I plan to pay them off over the next 3 months. I would like to know if I should pay these in full or pay a reduced amount (if offered) – how much of a difference will paying a reduced amount have on my credit history?
Bearing in mind all 4 accounts are 3 years old.
Many thanks
Sara (Debt Camel) says
I have looked at this question here: https://debtcamel.co.uk/ff-credit-record/
Lisa says
Hi,
I have 13 defaults on my account!! I got in to financial difficulty and took out many payday loans a credit cards which I couldn’t repay. Things are good now and I pay most of my creditors small amounts a moth, most of the defaults are from 4-5yrs ago so I’m just playing the waiting game for them to drop off after the 6yrs. But I do have 2 creditors that i’m not sure what to do with.
Payday uk have filed late payment every month for last 4yrs no default, I have just set up a payment arrangement with them which starts next month. can I ask them to add a default to my account after 6 missed payments 4 yrs ago so that the account can drop off my file sooner?
Another debt is with Npower this is a recent one, the npower account is closed and being delt with by a debt agency who I pay monthly, but npower file late payment every month. can they do this if they passed the debt on?
trying to get everything in place to improve my file I know if will take at least 6yrs.
Many Thanks
Sara (Debt Camel) says
Payday UK:
– yes you can ask them to add a default, see https://debtcamel.co.uk/debt-default-date/
– but also look at whether you can make an affordability complaint, seehttps://debtcamel.co.uk/payday-loan-refunds/ for how. If you win this complaint any interest will be removed from the balance AND any negative mark on your credit record will be deleted.
Npower:
– my guess is they haven’t sold your debt, they are just asking a debt collector to collect it. Unless the same debt is also showing from the debt collector on your credit record?
– you can also ask Npower to add a default.
Sara (Debt Camel) says
PS you do realise that you will still after to carry on making payments even after the debts drop off your credit record? See https://debtcamel.co.uk/paying-old-debt/
James says
Hi Sara, I successfully had a CCJ set aside recently. The court have notified the registry trust, and the registry trust say they will send the correct info to the CRA’s today/tomorrow.
Just wondered how long you think it might take for the CRA’s to wipe the CCJ from my credit record? Is there any way for me to expedite the process?
Many thanks in advance
James
Sara (Debt Camel) says
I’m sorry I don’t know the answer. Registry Trust may know.
Muddassar Jahangir says
Hi Sara, I had a defaluted overdraft from my bank which has this month been taken off my credit file as 6 years have passed since default. I understand that this debt is still outstanding but unenforceable. Can a debt collector or the bank still ask for money and issue a CCJ or can I argue that it is statute barred. Regards.
Sara (Debt Camel) says
Why do you think the debt is unenforceable – that has nothing to do with being on your credit record. It can be hard to show an overdraft is statute barred, read https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline about it.
Muddassar Jahangir says
My understanding was a debt once statute barred is unenforceable. I have looked at your statute barred link but can’t seem to see anything about overdrafts. Can an overdraft never be statute barred?
Sara (Debt Camel) says
A debt is unenforceable if it is statute barred. In that link, see the section titled “what is the cause of action” and talk to National Debtline about your overdraft. The fact the bank added a default date more than 6 years ago is a positive sign that it may be statute barred.
Muddassar Jahangir says
Thanks I will get onto ND
Lisa James says
Hi,
Can someone help please?
My debts have disappeared from my credit file as they are older than 6 years.
One of them has offered me a really good deal to pay it off, but it won’t be paid in full.
If I take the deal will it reappear on my credit file as partially paid or not show up at all?
Thanks Lisa
Sara (Debt Camel) says
A debt won’t reappear. See https://debtcamel.co.uk/ff-credit-record/.
BUT how good a deal are you being offered? What sort of debt was this originally and when did you open the account – not when did you run into problems with it.
Jason King says
Hi Sara,
I’ve got a CCJ for £870 by Lowell using BW Legal from July 2014. I discovered this very late and requested docs from the original creditor and applied for a set aside (5 years after) because I didn’t get the CCJ forms at the time and thought I had a fair chance of challenging the default amount.
Decided to negotiate with BW Legal & insisted that 50% full and final will be paid within 14 days if they agreed to a consent order so that CCJ could be removed from file earlier than 8 more months.
CCJ set aside date already in play for October 2019 in case they didn’t agree.
A supervisor called me back, claimed they agree to my offer, I paid the sums and chased for the account to be closed but was very concerned when the call centre didn’t know any agreement had been struck, said nothing on file showed that it won’t be a standard ‘satistied’ status even though the supervisor I spoke with said he will pass my proposed offer to make sure the CCJ is ‘settled’ not ‘satisfied’.
I’m applying for a remortgage soon and changing to a career in finance and very keen to not have a satisfied CCJ on my file.
Is there anything I can still do?, my emails are ignored and the call centre just keep telling me someone will call me back in due course.
Have I been extremely stupid paying without a written agreement? Can I still confirm with the county court that I want the set aside date to still go ahead? even though payment has been made?
Sara (Debt Camel) says
“Have I been extremely stupid paying without a written agreement?” yes you have.
I suggest you send BW Legal (SAR@bwlegal.co.uk) a request for a copy of all your personal information including recordings of all phone calls. I hope they will confirm what you were told.
laura bingham says
Hello
I have a numerous amount of defaults on my credit file. I have been offered a discount from capquest. The balance is £1100 and have been offered £450. If i accept this and it shows as satisfied on my file does this increase my score? It is due to drop off in 2021. Is it worth paying the £450 in full or should I continue to pay the affordable monthly payments for a VERY long time clearing the £1100. Thanks.
Sara (Debt Camel) says
No it won’t increase your credit score BUT it may make other lenders more likely to give you credit AND it prevenst capquest hassling you or even going to court for a CCJ>
So if you can really afford this, it’s a good idea. but don’t borrow more money in order to be able to settle this. At the moment all your debts have interest frozen, don’t exchange that for having expensive interest live debt.
BUT first think how good an offer it actually is? What sort of debts are these and how old are they – when did you open the credit card account or whatever?
laura says
This is for an overdraft from 2015. I defaulted in Sept 2015 so this is on my file until Sept 2021?
I am currently paying £1 to each debt company and have upped these payments as my financial situation improved. I just want rid of the black cloud now.
Thanks
Sara (Debt Camel) says
ok – thats a decent offer for an overdraft then. Go for it if you have enough money!
laura says
Brilliant. Thank you for your help and advice!
Take Care!
Daniel says
Hi there I have 5 defaults on my credit file but these are not loans they are telecoms. All together they add up to £1456. I am willing to pay these back i no this wont improve my credit score. But surely it has to have a positive side after repaying your defaults ? Will I be accepted for credit after these defaults have been paid off in full ? One other thing once the default is on your credit file and you have paid these off in full will my chances off getting credit in the future be promising?
Thanks
Sara (Debt Camel) says
Lenders don’t use the calculated credit score you see. Some use something very similar, and repaying the debts may not help a credit application there. Other lenders are happy if the defaults are settled. Others are happy if the defaults have been settled more than a year ago. Others… sorry it is up to the individual lender what they do!
In general high and mid cost lenders will be more likely to lend when defaults are repaid and low and very low cost lenders are more fussy.
Darren says
Hi,
I’ve read through quite a through sections on your website and have found the information to hand extremely helpful and informative!
I have gradually improved my finances, satisfied the only CCJ I have on record and have even got out a line of credit card to re build my credit trustworthiness.
Unfortunately I still have a few defaults and missed payments, obviously theirs not much I can do with the missed payments, but I would like to clear up the defaults so that I go to apply for a mortgage in a couple of years and check more boxes in the mortgage brokers lending criteria.
With that being said and having cleared up defaults looking much better than un-paid up defaults. My question is; will offering up a full and final payment to clear the defaults and potentially have them being marked as ‘partially satisfied’ instead of ‘satisfied’ effect me in less than a way with a mortgage lender than if I’d completely payed the defaults in full and they were only marked as ‘satisfied’?
Thank you for taking the time to read this!
Any response I receive will be greatly appreciated.
Sara (Debt Camel) says
See https://debtcamel.co.uk/ff-credit-record/.
When will the CCJ go from your credit record?
Darren says
Thank you for the link to this information Sara!
The CCJ is fairly recent. I received the CCJ October 2018, and offered a full and final payment in July, the CCJ was then marked as satisfied as part of my negotiating a full and final payment. I am also under the belief that a CCJ can not be marked as ‘partially satisfied’ anyway as it is a court issued debt. Is this correct?
I have 4 defaulted accounts. Which go from Setpember 2015 – October 2016
I have had a good read through the link you gave me and followed that through to your link on weather a partial settlement will make it harder to get a mortgage.
To summarise I have 1 CCJ which drops off in 5 years,
And 4 Defaults that will drop off in 3 years or less.
After reading the information you gave me I can see I would probably not qualify for the top mortgage deals in 2 years time with all defaults fully satisfied.
However 5 years seems a long time to wait to get out a mortgage, so I think the best bet might be to go ahead and offer full and final payments on all the defaults and to stop any future CCJ attempts and to build up a period of time of having them cleared up.
Perhaps then I could go for a mortgage in 2 – 3 years and have a chance of being accepted?
Would you be able to tell me how appealing I would be to a mortgage leader in that situation?
Thanks again
Sara (Debt Camel) says
You are right that a CCJ can’t be marked as partially settled.
With a CCJ on your credit record for another 5 years, that is going to rule out some lenders and most of the good mortgage deals. It probably won’t make much difference if settle the other defaults in full or partially… so you may as well settle them partially and build up a bigger deposit.
What sort of deposit are you likely to have in 3 years by which time all the defaults will have gone?
Darren says
Thank you so much for answering my questions so far Sara. It’s really appreciated.
I think I’m going to follow your advice and start applying for a mortgage after all the defaults have dropped off so that they won’t affect my mortgage application. That’s probably the best advice I could have got as it has just brought me back down to reality!
With that being said, and I hope I’m not veering off the subject of debt and into mortgages to much here but would you happen to know how much difference there is likely to be between an ok mortgage deal (with my satisfied CCJ on record of course) and a high street bank top mortgage deal? Just so I can weigh up the figures in my head really.
I’d like to have atleast £25,000 for a deposit in 3 years but this does put the thought in the back of my head, that if I carry on renting for a further two years, wait for the CCJ to drop off and go for one of the top deals then would the savings made on a better mortgage deal even further down the line (5 years time) out weight the rent paid over the further two years and make my finances better off in the long run?
Sara (Debt Camel) says
Sorry I meant what % your deposit is likely to be, not the amount. To have any chance of an OK deal you are likely to need 20% plus. Also to have low or no unsecured debt.
So for the next few years – settle the defaults as soon and as low as possible, prevent any new credit record problems, build a deposit, keep the debt down. Then talk to a good broker about the mortgage market at that time. Who knows what it will be like in three years? Posr Brexit? Possibly during a recession?
Darren says
Sound advice, thank you for all the great information. I’m currently saying towards my mortgage and everything is going well so far. Just wanted to pop in and say thank you for shining your wisdom!
luke says
Hi
myself and my partner are looking on getting a mortgage soon but she has “very poor” credit, by this I mean she has a couple of defaults on her record ( roughly about £1-£1.5k ) some are “satisfied” but they date back a few years. we are going to pay all these off in the next month or 2 from money I have saved to help boost her credit moving forward, do we pay the satisfied debt? or leave that ( does it make a difference ) and one of them has a current balance of £300+ but has a default balance of £900, which amount do we pay ( again does it make a difference )
my question is, will we be accepted for a mortgage or will I have a better chance getting the mortgage in my name only as my credit score is good with no defaults etc
thanks
Sara (Debt Camel) says
A satisfied debt has already been cleared, is the balance not zero?
You need to ask what the current balance is. They may take a settlement offer. If the default is going to drop off soon, after 6 years, it makes n difference if it is partially satisfied or fully.
Can you get the mortgage you want based on just your salary?
Luke says
Hi Sara
Thank you for replying, she has rung up and I think the debt have been bought by one debt management company who have in turn offered her a settlement figure ( which is pretty reasonable, and we will settle )
‘re the mortgage, i have only done mortgage calculates online but they seem to suggest I would be able to get a mortgage on my current salary but I understand it’s more difficult getting a mortgage alone that it is as a pair
( would it make a difference if the mortgage lender knew i had my partner living with me and paying even though she is not on the mortgage )
Sara (Debt Camel) says
Talk to a mortgage broker. There is no point in me guessing about your situation!
Rebeckah says
Hello.
I had some trouble a few years ago and now just getting round to setting up a repayment plan. Two defaults 2014 and 2015. If I have a replacement plan in place will these still fall off my file or will they stay there till is full paid then wait 6 years
Thanks
Sara (Debt Camel) says
The defaults will drop off 6 years after the default dates whatever you do. Getting a repayment plan in place should stop the debt collectors going to court for a CCJ so it’s a good idea.
Sammo says
Hi I have 8 defaults ranging from Jan 18- July 19. I’ve paid two off and Lowell who have my very account which had a balance of £3570 have offered an 80% reduction that can be spread across theee payments. There is a chance I would be able to pay all my debt off in full over the next six years, so should I stick to doing that, or take the discount as it’s such a good offer? My long term aim is to improve my credit score and make myself mortgage worthy again.
Sara (Debt Camel) says
That is a very large discount, I suggest grabbing it if you can afford the three payments required without more borrowing.
In an ideal world, it’s good to avoid a partial settlement flag on your credit record. A partial settlement doesn’t affect your credit score at all, but it means a few lenders may be less inclined to lend to you.
But you are a very long way from this sort of marginal issue being relevant. Your credit record is already a train wreck with 8 recent defaults. It will not climb up to good for many years.
You will not be mortgage worthy again for a ling while and not until all the defaults have been settled. Partially or in full matters a lot less than the fact of getting them settled! Getting this huge discount will let you settle other debts much sooner and be in a position to then start saving for a mortgage deposit.
For you, it is settling all your debts and then saving that mortgage deposit that is what matters. The very minor disadvanatge of having a partial settlement seems unimportant by comparison.
Sammo says
Thanks Sara
I kind of negotiated my own DMP around all my creditors so my repayments are low as I got in to a mess with payday loans and snowballing. So I understand the defaults will stay there for 6 years I guess In This case this default falls off before my last one registered in July 19 so it’s a no brainer
I’ve just got a promotion at work so based on my current debt I anticipate I could pay it all in 3-4 years based on the full balances, would that still not matter as it takes 6 years for the debt to drop off my file? It’s not just about the mortgage I have some share save schemes that will take care of the deposit element, it is about the credit file mostly as you can imagine my score is through the floor
Sara (Debt Camel) says
I can’t guess what the mortgage market will be like in 4 years time. This is based on the mortgage market as it has been for a few years.
You can get a mortgage at a reasonable rate if the defaults were more than 3 years ago AND they have all been settled for at least a year. By taking this partial settlement, you will be able to settle other debts sooner – that matters.
Settling a debt does not improve your credit score at all even if it is settled in full. Settling a debt partially will not make your credit score any worse than settling it in full.
Partial settlement is a flag that a few lenders may take account of. You will have to go through a mortgage broker anyway if you are applying with a lot of settled defaults on your credit record. The broker should be able to steer you away from any lenders who would be fussed about the partial settlement.
See https://debtcamel.co.uk/improve-credit-score-mortgage/ for more about how credit scores matter for mortgage applications.
You mentioned payday loans – if you used any payday lenders more than a couple of times, look at an affordabilty complaint. See https://debtcamel.co.uk/payday-loan-refunds/ not just because you may get a refund but because if you win the complaint any defaults or late payments on the loans being refunded will be removed from your credit record.
Sammo says
Thanks Sara I will do I did kind of start the process but I had some ill health so didn’t see it through and the complaints are more then 6 months old now. Will see what I can do. Some of the defaults are against credit cards but was partially a consequence of the paydays having multiple at once, at the time of the credit card being taken out I would say the assessment was fair and was affordable it was the paydays that had a domino effect essentially
Sara (Debt Camel) says
That is a shame. You have 6 months from when the lender responded to you to take a complaint to the ombudsman. Some lenders were slow, so check back and see if you are in time with any of them.
Hatty says
Hello,
I have 2 defaults. One is ee for 40 pounds and one is virgin media.
I have satisfied theses and they have been on my credit score for 3 and a half years.
Is it unlikely for me to get a morgage
Sara (Debt Camel) says
when did you pay them?
Hatt says
1 year in feb for one and 1 year and 6 months for the other one
Sara (Debt Camel) says
Then from March onwards you should probably be able to get a mortgage at a reasonable rate, assuming your affordability, deposit and other debts are OK. Read https://debtcamel.co.uk/mortgage-with-debts/. And go through a good broker, don’t apply direct to a lender or use whever the estate agent selling the house suggests.
Bell says
I was wondering if i can get a morgage when i have a student overdraft ?
Sara (Debt Camel) says
So you aren’t a student any longer? how large is your overdraft? Any other debts?
Bell says
No other debts, no i graduated in may. It is 1£600
Sara (Debt Camel) says
Well at some point your bank will say that your student overdraft is turning into a normal overdraft. so it would be a good idea o clear this, not because it will rule a mortgage out but because it will cost you a lot of money.
What is your credit score like? Do you have a deposit saved up?
Bell says
Yes, i have 2 years to clear this. I just wondered if i applied for a mortgage would theynlook at it negativity.
I have a deposit saved and a good credit score.
Sara (Debt Camel) says
Using a lot of an overdraft isn’t a great sign. But if everything else is fine I would have thought you will be OK. Could you just blitz it down for a few months?
Have you checked on affordability? There is a link to a good calculator in here: https://debtcamel.co.uk/mortgage-with-debts/
Collin says
As reading above , i wanted to ask.
I dont care what rate really as just need a mortgage.
I have 2 defaults ober over a year and i paid them a year ago basically.
I also have a student overdraft that is £1700 in debt. I am paying it off.
But just womdered what the likely hood of a mortgage is now?
Sara (Debt Camel) says
It will depend how large a deposit you have and what your affordability looks like. Having cleared the defaults over a year ago is good. I suggest talking to a good mortgage broker.
LRS85 says
Hi Sara,
Quick query regarding the above, My credit rating is currently poor, However most of the adverse events have dissapeared now from my report as they are over 6 years old. The only 2 that remain are a Defualted account that is satisfied (And will drop off my report in october as the default was registered in octy 2014) and a credit card that is in arrears but not defaulted and has arrangement to pay markers, My question is once the defualted account drops off my file in october will i see a significant improvement in my score? the arrangemtn to pay on credit card will remain but all my other accounts are good. Me and my wife are applying for a mortgage at the back end of next year and will have a circa 10% deposit and both earn combined around £75k, is this realistic in your opinion?
Sara (Debt Camel) says
How long has the credit card been in an arrangement to pay? When will it be paid off?
LRS85 says
Hi Sara, the credit card has been in an arrangement to pay since Oct 2019. It has a balance of £260 (£200 limit) currently paying £20 a month off but plan to clear it to £0 by the end of this year, maybe sooner. The only other accounts I have are a car on hire purchase which has never been in arrears or had any missed payments and a mobile which is the same.
Sara (Debt Camel) says
That needs to be paid now as fast as possible. Like now if possible. Mortgage lenders do not like people to have had recent problems and when you apply that will only be two years old. You want it to look like a very short-term problem in the past.
LRS85 says
Thankyou for that response.
One more thing, Will my rating improve when the default drops off?
Sara (Debt Camel) says
yes, see https://debtcamel.co.uk/credit-score-change/.
soloman says
I had a debt which I didn’t pay to a bank soon after I got a default after this It showed as settled that’s was 2018 now in 2020 Hoiston have got the same debt and put a default on my credit score is that right
Sara (Debt Camel) says
Have Hoist used the same default date as the original creditor did?
soloman says
yes they have but the bank settled and put £0 but hoist have put the full balance back up
Sara (Debt Camel) says
That is a what should happen when a debt collector buys a debt. See https://debtcamel.co.uk/sold-to-dca/.
NB i am assuming you didn’t agree a settlement with the original creditor, they just sold your debt.
soloman says
yeah I’m just shocked that they settled in 2018 and now hoist have put the same debt on in 2020 feb why after 2 years ????
Sara (Debt Camel) says
sorry did you agree a settlement with them or did the creditor just change the status to satisfied without you expecting this?
soloman says
so I didn’t agree to anything the debt status showing defaulted by the bank 2016 and after showing settled in 2018 no payments made on my credit report . and now hoist have put a default back in feb 2020
Sara (Debt Camel) says
ok, that is what should happen if the debt is sold. provided Hoist have used the old default date, that is OK.
What sort of debt was this, credit card, loan, overdraft?
soloman says
overdraft but why now after 2 years
Sara (Debt Camel) says
probably because they are now going to contact you about it…
soloman says
it seems very strange after 2 years and theres noway of getting this over turned or taken off
Sara (Debt Camel) says
they haven’t done anything wrong. You have enjoyed 2 years with a better credit record than you should have had.
Graham says
Hi
I have accounts that defaulted on in jan 2015, I have paid most things off now however there were 2 accounts from Lloyd’s TSB that I never paid and they never contacted me I’m sorted now and was about to contact to pay these bills however I have been on my credit report and they are now listed as satisfied and settled?? I have no other info about this being passed to another lender my addresses are listed online with both Equifax and Experian so would have expected to have some contact from a new creditor if it had been passed on?
Can you offer any insight??
Sara (Debt Camel) says
My guess is that the debts have been sold to a debt collector who hasn’t yet got round to adding the debts to your credit records.
Your options are to ask Lloyds who the debts were sold to and get in touch with them. Or to put the money aside and wait to be contacted by the debt collectors. The debt collectors may be happy to accept a settlement offer from you, see https://debtcamel.co.uk/debt-options/less-common/full-final/.
The debts will drop off your credit record in Jan 2021. The debt collector should use the same default date. It’s good to take a copy of your credit record now showing the default date Lloyds used so you can produce that if the debt collector uses a later default date.
Dan says
I have some old defaulted debts that my ex ran up in my name, 2 mail order debts, and 2 credit cards, and a large gas bill.
I haven’t been in a position to sort them out until now, and I want to pay them off.
My credit score is decidedly average and I’ve been doing everything I can to sort it out but obviously it won’t actually begin to “heal” until these debts are sorted out.
I can pay some off in full, but a settlement would be better, but my main interest is what will help my credit score the most. Pay off in full on some, settle quickly, or take a monthly payment to help drive my score up to show responsible paying?
Thanks
Sara (Debt Camel) says
Nothing you do will make any difference to your credit score – settle them fully, settle them partially or repay them steadily or not pay them at all! See https://debtcamel.co.uk/defaulted-account-credit-score/ which explains this.
But it is important the debts are settled to stop a creditor going to court for a CCJ which would wreck your credit records for another 6 years. I suggest you settle them partially where possible to save money.
George says
Hi
I have received inheritance -enough to pay off the debt from a cancelled credit card in full ( it was cancelled 1 year ago as I could not make payments due to no income of my own, and interest and charges frozen). If I contact them to say I will pay debt off, can they add interest back on again?
Sara (Debt Camel) says
No, they shouldn’t do that.
Do you have enough money to repay all your debts? Including any you are currently being charged interest on, eg an overdraft?
Do you now have an income?
Nathan says
I have 2 satsuma loans which I have been offered a settlement figure on, not massive but slightly lower.
My issue is that these are on my credit file as open but delinquent! I am in a DMP but want to clear as many of my outstanding credits I can ASAP. Is it better to settle full amounts owing or take the settlement offer!! If they were closed or showing defaults I would take the settlement but the delinquent marker has confused me.
Thank you in advance
Sara (Debt Camel) says
Were these loans large? Did you have any loans from Satsuma before them?
Nathan says
Hi Sara, 2 loans, taken out after one another. 1st loan was approx 500.00 and the 2nd 800.00.
I have no issue repaying them as I took them out but just after taking them out I was made redundant and had some issues, Satsuma were informed and confirmed by email that a temporary mark would be added to my file to say I had made an arrangement to pay, which I did and continued to pay until I could settle in full. I have told satsuma that I will settle in full but just wondering if it’s better to settle in full as they are not defaulted or settle for the partial settlement
Thank you
Sara (Debt Camel) says
So most of the other debts in your DMP are marked as defaulted – what were the default dates?
Was there a period of a few months when you didn’t paying anything to the Satsuma loans? How much are you paying at the moment in your DMP?