This default is destroying my credit score – how do I get rid of it? This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Sometimes it is the default feels unfair in someway
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this. If there are practical steps, then you can take them yourself. Don’t ever pay a firm that says they can sort this for you – their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and Call Credit. They all apply the same two rules that determine when a debt is deleted from a credit file:
- a debt that doesn’t have a default stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default stays for six years from the default date. This applies whatever happens to the debt after the default – you may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know. I suggest you should check your records with all three CRAs so you know exactly what they say.
“I agree with the default, but six years! That’s ages!”
If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.
There is nothing you can do to make the default go away sooner. You can add a Note to your credit file, which explains why the problem arose. And as the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
Usually the best you can do is settle the debt as soon as possible. This doesn’t actually improve your credit score, but it may mean that lenders, especially mortgage lenders, are more prepared to give you credit.
“The default was added very late”
The principles that govern what should be reported to the credit reference agencies say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it won’t be deleted, but it should be changed to be earlier so it will drop off your file sooner. See my article “What should the default date for a debt be?” which describes how to get your record corrected.
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears. Write to the lender, then appeal to the ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears compared to what you should have paid reach 3-6 months. What you have set up is called a “debt management plan” even if it was just an informal agreement with one lender. See How does a DMP affect my credit rating for more details.
Also although you may hate that default, you will often be better off with it, rather than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“The lender is adding a new default every month!”
This is normal. What matters is the original default date, it will drop off six years after that. The later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first default.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender. Write to the debt collector and ask them to correct it, and then appeal to the ICO if necessary.
“I never owed this money”
In this case, you need to ask the lender to delete either the whole record (if the debt never belonged to you at all, it is some form of mistaken identity) or the default (if it was your account but you were never in arrears).
“I was never properly informed about the debt”
Arguments can occur between you and a creditor if you feel they didn’t properly write to you about the debt, explain what the debt was or the size of it. Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved – this sort of thing.
If you paid the debt promptly as soon as you became aware of it, you could ask the lender to remove the default. Pointing out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems can support your argument. You may have more luck going to the relevant Ombudsman rather than the ICO if the creditor refuses.
“The debt isn’t enforceable”
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable. If this is because it is statute barred, then a default should have been added to the debt over six years ago so you should ask for the default date to be changed so that it is earlier.
But if it is unenforceable for other reasons, the debt still exists and the lender may refuse to delete it from your record because you do still owe the money.
“I should never have been given the loan!”
Until two years ago I would have said you will find it hard to make this argument work… but since then many thousands of payday loan defaults have been deleted from credit records, see this article from Experian about Wonga loans.
If you think you had payday loans that were “unaffordable” (you could only repay them by borrowing again each month) ask for a refund of interest you paid and also ask for any defaults or late payments markers to be deleted from your credit file. How to ask for a payday loan refund looks at these affordability complaints in details – the template letters in that article have worked for thousands of people.
Here is a comment from a reader who made a successful complaint againt Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information already removed from my credit file as well which made my credit score jump by 100 points :)
I was in an abusive relationship
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now starting to be recognised as a serious problem, see this report from Citizens Advice. If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
Summary – when can you get rid of defaults
If the default doesn’t comply with the “3-6 months arrears” rule then you can ask for it to be corrected. But if the default is in line with the “3-6 months arrears”, there isn’t normally anything you can do about it except wait for it to get older and then drop off.
Pay a defaulted account to help credit score?
Is an unknown debt on your credit file?
Can you get a mortgage with debts?
Sam says
i had a default 2 years ago. for £7900 i now owe £6500 its really affected my credit score and i find it impossible to get it any higher. any advise on how to deal with this? as itll be gone in 4 years should I even bother paying it off? at moment im paying £5 a month. will this affect me getting a mortgage in 4 or 5 years time?
Sara (Debt Camel) says
If you stop paying it, the lender – or a debt collector it is sold to – will go for a CCJ, which would be worse news for your score for another 6 years.
You haven’t given any reason for saying there shouldn’t be a default, you need a specific reason to attempt to get it removed.
You may be able to offer a full and final settlement?
Yes this will affect you getting a mortgage, even after it has gone from your credit record unless it has been settled. See https://debtcamel.co.uk/mortgage-debts-not-on-credit-record/
Wellz says
Hi There,
A Sky account was opened in my name (which I never opened) and was at one point on my credit file around around 2012/2013. I spoke to Experian about this explaining that this debt isn’t mine and even wrote to Sky explaining that I never opened the account and even provided a fraud line reference to them and has since then been dropped from all my credit files that I know about. 6/7 years (today I received the letter) forward Cabot Financial have written to me saying they have now “found me” and “welcoming” me to a new way I can manage my debt with them for an outstanding balance I owe Sky.
As far as I am aware currently this debt doesn’t exist on any of my credit reports now.
Just wanted to get your advice on how I should proceed with this? Can they do anything more?
Thanks.
Sara (Debt Camel) says
Reply to Cabot saying what you have just put here. Ask them to confirm that they will be removing your name from this debt which is not yours.
Tom says
Hi Sara
I have a default from ID Mobile for a phone contract worth £120. The contract was set up as a direct debit so I naturally assumed the £5 (over 24 months) a month would leave my bank automatically. This happened in 2016 and I’m only just aware of it. I spoke with an ID Mobile rep who confirmed it was a mistake on their side with the direct debit.
Is this enough grounds to have the default removed from my credit report completely? Or will the status just change if I pay off?
Thank you
Sara (Debt Camel) says
I suggest you get back to them in writing (email is fine) saying that their rep has just confirmed on the phone that they failed to collect the DD for your contract because of an error on their part and that they never informed you about this so you were not aware of it. Say you are happy to pay the £120 but you want their assurance that they will delete the Default from your credit record.
Immanuel says
Hi my brother took out a phone contract in my name without my knowledge several years ago and the account fell into default status. The account has been settled but I only recently found out that it stays on my account for 6 years. I have reported it to Experian who contacted EE(Orange) but they said nothing could be done. I also contacted EE(Orange) who told me the same thing as it doesn’t constitute fraud which I don’t believe to be true. Is there any other steps or measures I can take to get this removed from my credit file?
Sara (Debt Camel) says
Have you reported it to the police and Action Fraud?
youss says
In 2017 I had a contract phone with three and in 2018 I called three to cancel the contract and at that time they canceled the contract and they did not ask me to pay a price for the cancellation. And after this cancellation I returned to my country in France and in early 2019 I returned to London, and I found in my credit score experience a default account of 130£ and I contacted three to find out it’s What’s wrong with this account And they explained to me that you have to pay for the cancellation of your contract in 2017 , but me I did not receive a letter I did not receive a call to tell me that I had to pay that , so I paid this amount Two months ago
I would like to know if the default account will be removed automatically
or i need to wait 6 years,
and if there is any agency that can delete me default ???????
many thanks
Sara (Debt Camel) says
The default will be removed 6 years after the default date. Paying the loan doesn’t make a difference to this..
You can add a Notice of Correction to your credit record saying you paid the default as soon as you found out about it as the mobile company had not told you about the debt.
Raf says
Hi,
I had a car on finance and a friend at the time was in desperate need of a vehicle as his mum had suddenly fallen ill and he needed a car to go to the hospital. He told me he had insured his vehicle and sent me a picture of his insurance certificate. Unknown to him a few days later his insurance was cancelled, as his payment had bounced back from his bank.
As he was driving he got stopped by the police for not having any insurance. When he showed the certificate it came as no insurance but he wasn’t made aware of it. This then led the car to be seized to the police compound. My finance company had been alerted by the police of this matter and they came and repossessed the car.
I tried to dispute this with them and they kept saying I had breached my contract and there were not in a position to give me back my car. It was then sold it at an Auction. It was sold short of £11.,058.13, and I was told I had to pay this amount.
I always kept up with my payments, never had any missed payments with the finance company and also the solicitors company who were chasing the remaining £11k. A default had been put on my name, on the basis of the car not being insured.
I then appealed this with them as to why I had a default on my credit file and was told this was due to the car not being insured to drive. I wanted to ask, is there a way of dusting this matter from getting it removed from my credit file?
Sara (Debt Camel) says
I don’t like commenting on this sort of consumer dispute without seeing the paperwork. I suggest you go to your local Citizens Advice with all the car finance papers and communications after it was repossessed and then sold.
Raf says
Hi Sara,
What would that do for me?
PF says
Hi Sara,
I have entries on my credit file from a company called Vivus. From what I can gather this company is no longer trading, can I request that these entries be removed from my file?
Thanks, PF
Sara (Debt Camel) says
Were these debts paid? if not, was yours sold to Merligen or MMF?
Ravi Sharma says
dear sir,
i never have dept with someone, what my bank account closed for fraud? that i never deed. someone make payments my bank for goods
and then all bank closed my account for what i didn’t no. a pls help me.
Sara (Debt Camel) says
Hi Ravi,
can you go to your local Citizens Advice and ask them about this? They will be able to look at what has happened and say if there is anything you can do.
Ross says
Hi.
I recently applied for a mortgage but was refused due to a default on my account. I got a copy off my credit report and found that Scottish Power had placed a default on my account for the prepayment meter at my previous address. Surely this can’t right?
Sara (Debt Camel) says
Had you defaulted on your payments so they installed a pre-payment meter?
Jane says
Hello,
I have three default from equifax (seen on clearscore), opened on 10th august 2013, last updated on 20th 0ctober 2018.
I have settled these defaults including a payday loan (lowell, capquest and cabot) and it shows as closed.
These are six years old minding the opened date and they have not dropped off my equifax account but these do not show in my experian account. What should i do pls?
Sara (Debt Camel) says
Debts drop off 6 years after the default date, not after the date the debt was opened. If the debt doesn’t have a default date, the debt drops off 6 years after it is settled.
What are the default dates on these debts?
Those lenders probably don’t report to Experian, it is normal for some debts to not show on all credit reports.
Bella says
Hello,
Pls advise. I cannot see any virgin account defaulted in my experian but it shows three different accounts as default in my equifax, one as a virgin loan.
2 years ago I called virgin about the account and they csnnot find any records of it. They are all opened in 2013 and 2015 and last updated in 2016 as a default.
What do i do to get rid of this, although i had a virgin mobile account in 2012/13 but i did not take any loan neither can i recollect a default plus these are opened in august 2013 as shown in equifax and are 6 years old already so should have dropped off anyways. Pls advice.
Sara (Debt Camel) says
Virgin may not report to Experian – this is normal, nothing wrong with that.
If you only had one Virgin account, you need to complain to Virgin that they are incorrectly showing three debts on your credit record and ask them to delete the two that are incorrect.
The debts will drop off 6 years after the default date, not the date they were opened.
Hannah says
Can i get late marker wrongly added to my credit report from a company which is no longer in business?
Sara (Debt Camel) says
What evidence do you have that the late payment was incorrect? How long ago was it?