Credit Rating: Arrears vs Settlement vs Default - what's the difference between them?

[Brona]

In terms of credit card debt, what are the practical differences between having the following on your credit rating?:

1. Arrears
2. Arrears then partial settlement
3. Default then settlement with a debt collection agency

I know that lenders aren't exactly going to be running to lend money to anyone with these on their rating for 6 years, but what advantage does it give you to settle with the cc company as opposed to the debt agency? Is there a greater possibility of e.g. borrowing money at some point in those 6 years with only a settlement as opposed to a default? Or is it all pretty much the same outcome?

Many thanks in advance, and apologies if the answer is already here somewhere, but I couldn't find it in search

 

[Brona]

290+ views and no answer? Does no one actually know or did I say something wrong? I was thinking about ringing a couple of banks and asking their loan departments myself, I'll post here if I find out anything.

 

[wmpdd3]

I'd love to know too, the last people you can trust are the people in the collections departments of banks, they all seem to have a different answer.


I have tried to decipher the consumer credit act but its hard going and I cant find a simple version of it.