Defaulted

raver82

What does it mean when your credit card account has defaulted! I have gone over the credit limit on my Credit card in the past. But i have payed every payment on time! Does this mean i have defaulted my credit card account and there for will have a bad credit rating??

Innocent_Guy

In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract. A default is the failure to pay back a loan.[1] Default may occur if the debtor is either unwilling or unable to pay their debt. This can occur with all debt obligations including bonds, mortgages, loans, and promissory notes.

raver82

So my account isnt defaulted! But do you think the fact that ive gone over my credit limit be for means that ill will now have a bad credit rating?

jonesMUFCforever

Well your credit record will not be perfect but is there a reason why you ask?

Are you wanting to borrow more money or apply for another card?

TheEffect

If a creditor has told you you have defaulted or the account is defaulted, then you have not payed the creditor. I default on your credit report will drastically damage your credit report and you're very unlikely to get credit anytime soon. A default stays on your file for 6 years.

raver82

I was just wondering if it would affect my chance of beable to rent a property

thriftymomma

raver82 wrote: »

I was just wondering if it would affect my chance of beable to rent a property

it might, yes.

raver82

thriftymomma wrote: »

it might, yes.

So my credit card account hasnt been defaulted! but ive gone over the credit limit on the card before this could make the chances of beable to rent a property less likely! Ive just done a credit rating check on myself and it came out as 4 out of 5! So im hoping my chances of beable to rent are good?

TheEffect

raver82 wrote: »

So my credit card account hasnt been defaulted! but ive gone over the credit limit on the card before this could make the chances of beable to rent a property less likely! Ive just done a credit rating check on myself and it came out as 4 out of 5! So im hoping my chances of beable to rent are good?

Have they sent you a letter or contacted you saying you have defaulted on the account?

If yes, your chances of renting may be affected. Your credit report can take some time to update to show a defaulted account. It's not done in real-time.

raver82

TheEffect wrote: »

Have they sent you a letter or contacted you saying you have defaulted on the account?

If yes, your chances of renting may be affected. Your credit report can take some time to update to show a defaulted account. It's not done in real-time.

No they havent sent me a letter to say my account has be defaulted. Acording to the credit check that i did it shows the account as being seatled! It also shows were i went over the limit. It tells me my rating is good! 4 out of 5 with 600 hundered and someting points.

never-in-doubt

raver82 wrote: »

No they havent sent me a letter to say my account has be defaulted. Acording to the credit check that i did it shows the account as being seatled! It also shows were i went over the limit. It tells me my rating is good! 4 out of 5 with 600 hundered and someting points.

you'll be fine then - at the end of the day you maybe defaulted on the account in the respect of missing a payment but you never got a default registered against you which is good!

Just make sure you dont miss CC paymants in the future - you'll be fine for renting assuming your CRA is as you say so in previous post.