Removal of default notice from credit file

nathan999_2

Hi, does anyone know if a default on your credit file loses its effect on your credit rating the longer its on your file, ie will it have as bigger impact in 2 years time as it does now??

Madison

Can companies report a default again, after the six years is up, if the outstanding balance hasn't been settled in full? I have two due to end in November and I'm now making regular payments of about 10% of the balance so they'll be cleared by May 2010. However, when they send me a statement each month the minimum payment is for the entire balance, which obviously I'm not making.

GeorgeUK

Nathan, a default on your credit file will have a big impact. It will lessen with time, but as long as it is there it will put a serious dent in your credit rating - especially if it is not settled.

Madison, there can only be one default issued per debt. The default date must also be within 6 months of the actual breach of the agreement so they cannot just add another one onto your file.