Arrangement to pay - affect on credit rating?
Discussion
Hi All,
In the middle of last year my wife dropped a bit of a bombshell on me in terms of a rather large credit card bill (on both her and my account). Without getting into details she had only been paying the minimum off not the full amount.
Fast forward 6 months, and i've paid her CC off (highest interest rate) and made serious in roads into the debt she had left on mine.
Anyway during this time (Sept) I think the bank wrote to us asking us to reduce our overdraft from £xxxx to £xxx on a joint account we have (for mortgage payments etc). Not an issue as we had money in savings so I transferred over the difference (around £250) and all was well.
Fast forward to the last week or so, i've been using the credit scoring houses to see if getting ourselves financially straight has a had a positive impact on my credit rating (have been using Noddle but this time I used equifax) and straight away noticed a number of months of 'Arrangement to Pay' relating to the joint account on my credit score.
Now it turns out the overdraft needed to be reduced to £xxx from a figure £250 higher than my wife gave me, so they've been reducing the payment by £50 p/mth for the last four months to cover this. Now that we've realised our mistake my wife has called them and paid off the remaining amount from our savings account.
We're going to talk to the bank (Nationwide) as i've banked with them for 20+ years but I can understand that this 'Arrangement to Pay' is valid because we made a mistake... lesson learnt.
My question is that from reading around online last night an Arrangement to Pay is deemed quite serious (understandably) but having paid off £xx,xxx off debt in the last 6 months I don't want to ruin all the hard work for the sake of £250 (even more so as there is more than that amount in the saving account). Is there anyway for this to be removed or a note added to reflect this on my score?
Regards,
Phill
In the middle of last year my wife dropped a bit of a bombshell on me in terms of a rather large credit card bill (on both her and my account). Without getting into details she had only been paying the minimum off not the full amount.
Fast forward 6 months, and i've paid her CC off (highest interest rate) and made serious in roads into the debt she had left on mine.
Anyway during this time (Sept) I think the bank wrote to us asking us to reduce our overdraft from £xxxx to £xxx on a joint account we have (for mortgage payments etc). Not an issue as we had money in savings so I transferred over the difference (around £250) and all was well.
Fast forward to the last week or so, i've been using the credit scoring houses to see if getting ourselves financially straight has a had a positive impact on my credit rating (have been using Noddle but this time I used equifax) and straight away noticed a number of months of 'Arrangement to Pay' relating to the joint account on my credit score.
Now it turns out the overdraft needed to be reduced to £xxx from a figure £250 higher than my wife gave me, so they've been reducing the payment by £50 p/mth for the last four months to cover this. Now that we've realised our mistake my wife has called them and paid off the remaining amount from our savings account.
We're going to talk to the bank (Nationwide) as i've banked with them for 20+ years but I can understand that this 'Arrangement to Pay' is valid because we made a mistake... lesson learnt.
My question is that from reading around online last night an Arrangement to Pay is deemed quite serious (understandably) but having paid off £xx,xxx off debt in the last 6 months I don't want to ruin all the hard work for the sake of £250 (even more so as there is more than that amount in the saving account). Is there anyway for this to be removed or a note added to reflect this on my score?
Regards,
Phill
Managed to get hold of the bank at lunchtime and they've admitted they've made a mistake. They'll be adding a note to our credit file (and updating the status).
It looks like a computer glitch registered a default on our account (which looking back they can't see why) so hopefully all will be resolved in the next 6 weeks or so (assuming that's how long it takes for things to flow back on to the reports)..
It looks like a computer glitch registered a default on our account (which looking back they can't see why) so hopefully all will be resolved in the next 6 weeks or so (assuming that's how long it takes for things to flow back on to the reports)..
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