What are Satisfied and Settled Credit Accounts?

Posted by Sam Griffin in Credit Reports on 2 July 2018

What's the difference between Settled and Satisfied on your Credit Report?

Your Credit Report contains a huge amount of information about you, and how you’ve managed your credit agreements in the past. Different parts of your report will have a different level of influence on how you will be judged by a typical lender, but there are some entries where a small variation can have a big difference.

There are definite similarities between the Settled and Satisfied markers found on Credit Reports, and so they often get confused; and not just because the words themselves are quite similar. In some circumstances the two can be interchangeable, but they don’t mean exactly the same thing, and the subtle differences could mean a lot to a prospective lender.

See how different markers appear on your Credit Report

What do Settled and Satisfied mean?

Both markers indicate full payment and closure of an account, but it’s the circumstances that lead to this happening that cause the differentiation:

Settled refers to an account that has been fully paid up and then closed. This could be a loan that’s been paid off or a credit card that has been closed with no outstanding balance. These are the vast majority of accounts and you should see these markers on any accounts you’ve closed within the last 6 years.

Satisfied refers to a default or CCJ that has been issued, but is fully paid off so no further attempts to reclaim money owed are required. Once a Notice of Default has been served, the borrower ceases to be a customer, instead becoming a debtor and the account will be closed automatically. As such the information on the account, such as the remaining balance, won’t be amended at all until the account is marked with a zero balance and a Satisfied marker.

What effect do they have on my score?

The terminology itself does not have an impact on your credit rating, but the difference between an account that has been closed voluntarily by repaying any outstanding balance and one that is forced to be closed by a lender due to a default, is significant. Even once a default or CCJ is Satisfied, your score will not improve as a result of this happening and lenders will see the presence of a default or CCJ on your report as clear evidence of you having had trouble making repayments in the past, regardless of whether they have since been paid.

Even once a debt has been satisfied, the Default or CCJ will stay on your credit file for the remainder of the six-year period.

The use of the Settled/Satisfied markers will also depend on which Credit Reference Agency is returning the account information. Equifax for instance does not use a Satisfied marker for credit accounts, even for defaulted accounts they hold – it will simply use the Settled marker once a defaulted account has been fully paid and closed. TransUnion, however, uses both markers when necessary and in line with the criteria outlined above.

What if my credit report says “Partially Satisfied?”

You may also come across a Partially Satisfied marker. These are often placed on defaulted accounts when the lender and borrower have come to an agreement for less than the full outstanding debt to be paid. Like Settled and Satisfied, Partially Satisfied indicates the closure of the account and no further payments would be expected.

CCJs cannot be partially satisfied on credit files: the claimant may accept a lower settlement than the amount in the original judgment, but if the total outstanding debt is not paid, the court will simply keep it marked as Active until the entry is removed.

You can see how your own credit agreements – both open and closed – appear by checking your Credit Report. checkmyfile provides the UK’s most comprehensive Credit Report, with information from four Credit Reference Agencies, not just one. If you haven’t already, you can try checkmyfile FREE for 30 days, then for just £14.99 a month afterwards, which you can cancel at any time.

How often should you check your Credit Report

Your Credit Report is a key component in lots of important life events. What it says about you could make or break a credit application and so it’s vital that you know for yourself what’s being reported.

Published on 2 Jul 2019 by Richard Catlin

Full Article

The Advantages of a Multi-Agency Credit Report

These days your Credit Report can be checked for any number of reasons throughout the year, including background checks during job applications, landlord checks and even from insurance or utility providers when you shop around for quotes.

Published on 17 May 2019 by Paul Anderson Riley

Full Article

What Lenders Want To See On Your Credit Report

Your Credit Report holds a huge amount of information about you and your past relationship with credit. It’s collated from a wide variety of sources, is always changing and plays a major part in any lending decision - but you shouldn’t be afraid of what it shows.

Published on 2 May 2019 by Sam Griffin

Full Article

What Credit Searches Mean

One of the most commonly misunderstood aspects of Credit Reports are the credit Search Footprints left on your report whenever someone accesses your file.

Published on 25 Apr 2019 by Kirstie Day

Full Article

How to dispute an account error on your report

Whether you’ve been turned down for credit in the past and have checked your Credit Report to make sure there’s nothing there harming your chances, you’re checking ahead of making an application, or you’re just looking to make sure everything is as it should be, there’s never a good time to find a mistake with the information on your report.

Published on 17 Apr 2019 by Kelly Luff

Full Article

Your Rights When Cancelling a New Credit Agreement

For most people applying for credit the main concern is whether or not they will be actually get accepted. But occasionally a change in circumstances (or even just a little time to reflect on your purchase) means that a bigger concern might be whether you can change your mind and withdraw from a credit agreement (be it a credit card, personal loan or other credit facility) after it’s been granted, potentially preventing you from taking on additional financial responsibility that you no longer want or need.

Published on 18 Mar 2019 by Tom Magor

Full Article

Creditworthiness and Affordability – Which is Which

When reading the small print on most applications for credit, you’ve probably noticed two words regularly popping up: Creditworthiness and Affordability. Both of these measures are used by a vast majority of lenders when assessing your application, so understanding what each one means goes a long way to explaining why you may or may not be accepted for credit.

Published on 22 Feb 2019 by Ben Tumilty

Full Article

What Information Is On My Credit Report?

If you’ve ever taken out a loan, credit card, or other form of finance, you’ll know that the difference between acceptance and rejection relies heavily on the outcome of what the lender finds when it checks your Credit Report.

Published on 4 Jan 2019 by Paul Anderson-Riley

Full Article

Can Right to Erasure Get Rid of Bad Credit History?

General Data Protection Regulation (GDPR for short) was introduced on 25 May 2018 and unless you’ve managed to avoid the internet and checking your emails completely for the past year, you’re likely to have been bombarded with messages from nervous sounding websites updating their data policies.

Published on 3 Jan 2019 by Jamie Mackenzie Smith

Full Article

Why Searches Can’t Be Removed From Your Credit Report

The Searches section of your Credit Report shows you who has accessed the information on your Credit Report within the last couple of years. This effectively acts as a log of when you’ve checked your own Report, as well as a record of lenders checking as a result of applications for credit in your name. You’re also likely to see searches relating to prospective employers, landlords, insurance companies and other identity checks.

Published on 2 Jan 2019 by Beth Jennings

Full Article


We are rated number 1 for customer service on