my account was closed by HSBC and sent to debt collectors in around 2003. how will this effect my credit score

You could get your credit scores from the major credit companies ( I think Experian and Equifax in the UK?), and see for yourself what the effect is.

You can also make sure it's marked 'settled', and make sure there's nothing else on it that doesn't read well.

Unfortunately, your old default will stay on your record for five or six years, so the best thing you can do is apply for the loan with your own bank. If your account has been operating well over the past three years, they shouldn't refuse you, but might hit you with interest rates higher than you'd expect. If they do that, or if they refuse you, the best thing to do is go in and talk to them face to face, see what they can do for you.

Good luck.

Even though you paid the balance off, there will still be a negative listing on your credit report for 7-10 years.

If you need the loan, go ahead and do it. It shouldn't hurt your credit that bad. If you are not expecting to make a major purchase in the near future (vehicle or house), then it won't matter anyway. You will have plenty of time to pay down your loan before making a major purchase with another loan.

If you can, you should also keep a credit card, never have a balance more than 35% of the max, and make the payments ON TIME every month. This will help your credit score. I also believe paying more than the minimum due helps you credit score.

As for getting the negative listing on your credit report removed, it is very possible. You can go at it yourself, which is time consuming and frustrating, to say the least, especially since it is a legit negative listing. You could also enlist a professional to do it for you. You can check out my website at http://www.painlesscreditrepair.com/ for more info on credit repair companies.

If you are worried about your $7000 loan having a bad interest rate, you should try to get the negative listing removed before you apply for the loan.

Hope this helps!

I was taken straight to a debt collection agency with the HSBC bank last year, although I knew about the debt they never wrote to me or phoned me to say I was going to be sent to debt agency.

However, I ended up paying the debt off, near as damn it straight away (some 9 months ago). It did affect my credit score for a few months but my credit score is now looking good - 800+ with Experian!! I haven't tried for any other credit either!!!

So as long as you pay off your debts pretty quick and wait a while until you go for more credit then your score should improve.

I hope this helps.

John

Bad debt stays on your credit file for 6 years after it has been paid.This will have an adverse effect on your ability to get credit for that time . As it was a bank you owed money to i'm surprised you obtained another account as it normally goes to a central database that you defaulted in the past. Sorry but i can't see anyone trusting you with that sort of money.

You wont know until you ask the bank but although you paid the debt it is kept on your credit record for 7 years. Someone says change address, don't bother it doesn't go by addresses any longer it goes by your date of birth and national insurance number.

i owed bt £800 that was sent to a debt collectors.

also owed tsb £7000 that went to a debt collectors

and i had a few small debts that went to debt collector.

now i have paid it all off it seems that my credit is good.

and people are offering me loans and stuff.

so a long as its all paid off i think you credit score might even go up

it will have an effect on your credit until the account isnt part of your credit history... creditors look back on average 7 years... having an account charged off looks even worse... because the card company couldnt get their money and they sold your debt to someone else....

In the present economic climate, I would say you are in some kind of mess. I wish I could be more informative.

change addresses, live there for a year or two and reapply easy way round the system

whot credit score?