How long does a default stay on your credit file?

A default is a mark on your credit file that appears when a lender has closed an account due to missed payments.

A default can occur if you miss multiple payments over a period of time, usually for a few months or more.

If you default on an account, then a lender may decide to close the account after multiple missed payments.

Also, the lender may then pass the defaulted account onto a debt collection agency or take action to repossess any goods that were a part of the original credit agreement.

In more serious cases, a lender may consider court action to apply for a County Court Judgement (CCJ) against a defaulted account. 

Additionally, a default can negatively affect your credit score and credit history. Potential lenders can also see missed payments and defaults on a credit file, which could make them reluctant to lend to you.

Although, it’s worth noting that there are lenders who specialise in providing credit to those with a poor credit rating, however, these options may be limited or come with higher APR rates.

Having a default on your credit file can be very serious and can have long-term implications for your credit report. 

Someone with a default on their credit file may find it significantly harder to get credit or be approved for things such as a mortgage, a loan or a credit card. 

Also, lenders may refuse to lend to someone who has defaults on their credit file, or they may opt to lend out smaller amounts instead.

No. Usually, you can’t get a default removed from your credit file unless you can prove it was an error.

If this happens to you, then you’ll need to contact the credit reference agencies and raise a credit report dispute.

If the default was not an error but a result of missed payments, then you can improve the situation by paying off the debt.

Lenders can see defaults for six years after they have been recorded on your credit file. 

However, lenders can’t see a default on your credit file after six years, as defaults are automatically removed after six years.

It’s possible to get a mortgage whilst having a default, but it may be more difficult, as mortgage lenders may have certain requirements to ensure you can afford the mortgage. 

It’s also worth keeping in mind that any decision made depends on a lot of contributing factors from your credit history.

To find out what factors could be affecting your credit file, see our guide How to improve your credit score.

If you have defaults on your credit file, then it might be worth getting a copy of it to have a look at what is on there as a first step to start improving things.

Find out how to get a free copy of your credit report in our guide How to improve your credit score.