Is having settled on accounts with CRA negative

[hamilton669]

Is having settled on accounts a negative thing? i've read on here that it can be.

 

When i've looked at my credit file with equifax alot of my accounts show as settled even accounts that i've

never had any problems with ( old phone contracts, even a next catalogue that i've never used and one from avon when i used to be a rep)

 

If this is a bad thing how do i apply to get them changed and why are they even there.

[alfwithhair]

A' settled' account is derogatory while a satisfied account is viewed more positively.

A 'settled' account means that you have come to a negotiated settlement with the lender that is less than the original repayment terms of the loan.

Once the settlement has been reached, the lender will update your credit file with the words ‘account settled.’ Such a reference in a credit file is a bad mark. The term “settled” implies that you did not meet the full terms of the loan. Failing to properly negotiate a F&F offer can drop your credit score even more.

When negotiating a reduced payment amount, you need to make sure that on your credit file it will say ‘paid in full’ or ‘satisfied.’ Ether one of these terms on our credit file will imply that we met the full terms of the loan. This reflects more positively on our credit report than settled accounts.

[hamilton669]

Thankyou for that, most of these accounts i've never had any problems with so how do i get them to change it,

is there a letter i can send.

[alfwithhair]

You can write to the creditor and ask them to change it, but it is unlikely they will.

If you make it a condition of the F&F offer at the start then maybe, but once you have paid their not interested anymore.

It you didn't pay the full amount back then they are recording the status of the account correctly.

 

But yes write to them, they can only say NO

[chattanooga]

Far be it from me to argue but on my credit file, all my loans which were paid off before current financial difficulties are marked as 'settled' despite no missed or late payments and paid in full on time. I think 'settled' is the norm on an account paid off in accordance with the original terms.

[hamilton669]

most of these accounts are from years before i had any financial issues, all paid on time, the full ammounts, no missed payments eg. the next account that i never used i only got a catalogue.

[hamilton669]

I've just rang equifax and been told that having settled on an account is not negative, wish i'd just done that before haha.

[harrassed senior]

Thank you for letting us know that, we are indeed all here to learn as we go.