5 of 8

Write now Article Tools

Page 2 of 2

knew about, did not pay, but can pay now.

However, credit repair companies may correspond with a company that filed a CCJ against you, say, 3 years ago for £5,000, and offer them a reduced settlement, for example £3,000, if they will not object to a credit repair and application to set aside the Judgment Default of their CCJ.

If you have paid off a CCJ that is 3 years old, the credit repair company cannot use the leverage of paying the creditor some money not to object to the credit repair. The credit repair company relies on the creditor not being bothered to object.

As strange as it may seem, Credit repair companies are most effective if you have not paid any money towards the CCJ. If you settle a debt after the first 28 days, the CCJ will not be taken off the register. However, the file can be marked as "satisfied", if you apply to the Court.

Another insertion can exist on your credit record that is just as damaging as a CCJ and that is a "Default". If you miss two to three payments of an agreement, the creditor can send you a formal default letter. A CCJ and a Default are both regarded as serious information by lenders etc. You cannot pay off or "satisfy" a Default - it is just there and remains there! Be aware: An inexperienced clerk at a finance company can send a Default to you WITHOUT any supervision or a serious default.

At the end of the day, the best policy to avoid serious damage to your Credit Report is to pay bills, loans, finance etc. on time, or even better, if you can go through life without HP, loans etc., do not take them out. If you do have creditors and find yourself in a situation where you can not pay them, contact them and discuss alternative payment arrangements - most companies are more than happy to help you in times of difficulty and always remember, payment protection can be a blessing in extreme cases and should always be taken out.

Learn more about this author, Kim Evans.
Click here to send this author comments or questions.

• << previous page
• 1
• 2

Add your voice

Know something about How to get rid of inaccurate items on your credit report?
We want to hear your view. Write now!