By Neil Stone – Social Media Executive
A default can have a big impact on your credit report, and can be recorded for just a few pounds to several thousand. I find there is quite a lot of confusion around default so I’ve put together some answers to common questions.
What is a default?
A default occurs when an account has had consecutive missed payments and is then closed by the lender.
There is no set number of payments that can be missed before a default is recorded. When the lender considers that the relationship between you has broken down it can record a default.
A default date will be recorded on the account and it will be kept on your credit report for six years from the default date. After this time it is removed from your report automatically even if the full amount isn’t paid.
Some lenders will still send us monthly updates on a defaulted account. This doesn’t change the default date or when it comes off the report.