Definition of a default?

monochome_blue

Hi all,

Can someone define a "default" for me? I have credit card debts (£18k) which i'm in the process of tackling. All are on low/zero APR cards so i'm OK there.

However, there have been a few times (perhaps 6 or so) in the last year where i've failed to make minimum payments to cards. This has only ever been through administratove !!!! ups by me (i.e. paying to little by mistake when setting up standing order, or when I mvoe current accounts etc). This has never been for more than 1 month, i.e. I've never missed 2 consecutive payments. Is this a default? I just see that so many places denline you because of "defaults", whereas to me, if it is what I think it is, it seems quite minor?

All help appreciated!

MB

monochome_blue

Just done a little digging and found the below, is this a correct definition?

"The account is defaulted. You have failed to keep to your credit agreement and have not responded satisfactorily to requests to put your account in order. As a result the credit agreement has ended"

If so, then i think i'm ok :-)

Austin

YorkshireBoy

https://www.experian.co.uk produce a booklet entitled "Your credit report explained". You can view online, or download a copy from here...

http://www.experian.co.uk/consumer/index.html?order

It will answer all your questions.

In general though, my understanding is that a lender will mark 'only so many' late/missing payments before 'giving up' on you and marking your file with a 'default'.

Have a look at the booklet and post back with any questions you still have.

NB: It might be an idea to have a look at your credit report to see just how bad it is. You can order the statutory £2 paper copies from the website, or sign up for a free 30-day free trial. Just remember to read the T&C's before you press 'submit' to make sure you know how to cancel before it costs you £60.

If you want to check your credit file with the other main credit reference agency, it's https://www.equifax.co.uk

inmypocketnottheirs

In order for a default notice to be put on your credit file, the lender has to send a copy of the notice to you. A default notice will not be issued because of a late payment or one month payment in arrears. Most CC and finance companies seem to wait until atleast three months. Best though to check your file as advised above.

HTH

monochome_blue

Yep, I checked my credit file & there are no defaults, just half a dozen or so late payments in the last 3 years, so nothing too bad.

Thanks for the tips everyone.

MB