If the debts you have with Lowell are being reported to the CRA’s, we’ll update them with details of any payments you make to us.
It’s much better to pay your default than leaving it unpaid, but if this is an option, and you accept a discount, it’s good to understand how this might impact your credit file:
- If you choose to accept a discount offer and pay the remaining balance in full – any default will show as ‘partially satisfied’ on your credit file. This tells other lenders that whilst your debt was settled, you’ve made an agreement to settle it for less than the full amount.
- If you choose not to accept this discount offer and continue to pay your account in full – any default will show as ‘satisfied’ on your credit file.
Different lenders may use different pieces of information in your credit file to decide whether to lend to you. For this reason, the extent to which a ‘partially’ satisfied debt on your credit file can impact your ability to access credit in the future, can vary from lender to lender.
Typically, it is better to pay a debt in full, even if you can’t do this all at once, but if this is not an option for you, partially settling an account is better for your credit file than not paying anything at all.