Settled Arrears - How much is credit rating affected?

I have just settled a mobile phone account which has recorded 11 months of arrears on my Equifax report. I have been out of the country and mistakenly believed I had terminated the contract before leaving. How bad an effect will this have on my credit rating?

Reply to
notella
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In message , notella writes

Likely that you wont get any new credit at normal rates or from any of the main stream lenders.

Reply to
john boyle

Although.....you could contact the credit reference agency and ask them to put on a Notice of Correction explaining why your account went into arrears and what you did when you found out. As long as it's reasonable, then the credit reference agency will put it on for you, and all subsequent viewers of your file will have to read it when they consider you for another loan/credit card, etc.

Alternatively, wait for 36 months and it will disappear anyway - credit account activity information is only viewable for the last 36 months of activity.

Another alternative is to tackle the issue with the mobile company along the lines that you thought the contract had been cancelled (have you any paperwork to prove?), and that due their(?) incompetence, they continued with the contract and that as a result their information on your credit file is wrong, in which case you can ask for it to be corrected or even removed.

Reply to
Neaco

"Neaco" wrote

Not true if the account has been settled (as the OP indicated) - in that case, the activity in the months just prior to being settled remain on the credit file for another 6 years.

Eg: an account shows arrears Jan-Aug 2004; settled in Sept.2004. In August 2010, the account will still show on the credit file (not yet fallen off as less than 6 years from settlement) and the activity shown **will be that just prior to settlement in 2004**.

Reply to
Tim

All my accounts are now up to date. How long should I wait before considering applying for credit again?

Reply to
notella

Without a hint of irony, "Neaco" astounded uk.finance on 28 Sep 2004 by announcing:

Reasonable meaning not "defamatory, libellous, incorrect or frivolous" in this case.

Monthly information, perhaps, but the account will remain visible for 6 years after the last update.

Reply to
Alex

Without a hint of irony, snipped-for-privacy@yahoo.com (notella) astounded uk.finance on

28 Sep 2004 by announcing:

That depends on what product you're applying for, and to which company. The worst case is at least 6 years. Best case is now.

Reply to
Alex

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