Paid in full or partially settled

[broccoli_greens]

Hi caggers

 

I'm deciding on a strategy with my credit card debts and a question came up.

 

If I have a default on an account with CRAs, will there actually be any difference between a full payment subsequently or a partial payment? I.e. when it comes to getting a mortgage in coming years, will they actually take into account the 'paid in full' (if I do so) when there'll still be a default shown on the account?

 

Broccoli

[broccoli_greens]

Hi folks,

 

I wonder if anyone knows the answer to this? It's got me in limbo a bit as to my next steps...

 

Thanks for any help you can offer...

 

broccoli

[dinkdink]

I would love to know the answer to this.

 

Best I have been told is that the Default is there for six years, and it will be the worst status on account for six years, and thus will have an effect in deducting points.

 

I have been told that a settled account will attract additional points as the debt has been settled.

 

I was told that the default takes lots of points off, and the settlment adds just a little on, so seems it has little effect.

 

Someone too told me that a default is almost as bad as a CCJ and has the same effects for the same time, I am sure this is rubbish but any one confirm? reason i say this, Woolwich said that as long as there are not defaults within the last 12 months, things should be ok?

[reborn71]

Hi Broccoli_green

 

Whilst showing that you are paying your debts is seen to be good , a default is considered to be as bad as a CCJ as far as creditors are concerned. Once a default is on your file it stays there for 6 years (the same as a CCJ) whether it is paid in full or partially paid unless it was placed in error. Dink dink is right to say the effects of the default do diminish over time (i.e. your credit score increases) but this takes years not months to happen.

[reborn71]

Hi Broccoli_green

 

Whilst showing that you are paying your debts is seen to be good , a default is considered to be as bad as a CCJ as far as creditors are concerned. Once a default is on your file it stays there for 6 years (the same as a CCJ) whether it is paid in full or partially paid unless it was placed in error. Dink dink is right to say the effects of the default do diminish over time (i.e. your credit score increases) but this takes years not months to happen.