If its been several years since you stopped paying a debt and you haven't had any phone calls or letters for a long while, you may be hoping your debt has "got lost". Perhaps the debt collector has forgotten about it... Mr H has a typical situation: I stopped paying a loan at the start of 2016 when I lost my job. I have a Default on my credit file for June 2016. The bank sold it to a debt … [Read more...]
Defaults on your credit records
This page lists the main Debt Camel articles about defaults on your credit record, answering questions such as Can you get rid of a default? and Is the default date right?
Of course you often also need to tackle the debts themselves, your credit record may not be the most important thing to worry about. See Articles about old debts which looks at your various options, including whether a debt is "time barred".
"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. Or sometimes the default feels unfair in someway I will look at various cases to see what - if anything - can be done for each of … [Read more...]
A reader asked: My partner and I have a combined income of £54,000, We have a deposit of £20,000 (inheritance) and are looking to become first time buyers in a new build property at a price of £210,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are … [Read more...]
The Ministry of Justice is consulting on the current processes in which someone has a judgment made against them without their knowledge. Finding a CCJ you knew nothing about on your credit record is a very unfair situation. People may only find out about a CCJ at an old address when their mortgage or other credit application is declined, or they fail a tenancy check. Here are some of the … [Read more...]
A default badly damages your credit score, so how long will it stay there? That depends on what the default date is. In Britain, the credit record rules say: the debt, including the default, is deleted from your credit record six years later after the first default. A debt which is marked as defaulted will be deleted after six years in all the following situations: you have repaid the … [Read more...]
A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No! But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn't the only thing that matters! To start, it's good to know what your credit … [Read more...]
Mr N has asked: On checking my credit score I have two defaults on my account both with the same creditor. First default was on 11/14 and the second 08/16 for a total of £1,750. I am now able to get back on track and get a loan to pay this in full. If I write to the debt collector and say I can pay this off and they give me their guarantee to put fully settled on my credit record, is this the … [Read more...]
A reader asked: My Credit Karma report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]
A reader asked " I had some defaults on my credit record. The oldest one has just dropped off. It was over £7000 which I had repaid under a full and final settlement agreement. The other default left have three or four years left before they fall off but I've settled them all in full and they were also smaller than the first one that has gone. I thought with the big, partially settled debt gone … [Read more...]