Defaults?

andrewi

I have a couple of defaults in that I was slightly late in paying Tesco credit card. I paid the required amount within a few days.(2 days) Unfortunately I was defaulted because of this. I know my own stupid fault, but it does seem a bit harsh being defaulted.
How badly does this effect my credit rating?

Tixy

If its an actual default on your file (not just a missed payment marker) then it stays on your file for 6years from the date of default.
And whilst a settled default is a little better than an outstanding one then it will have a major impact on your ability to get credit.

But from what you have posted it doesn't sound like its a default, a default would usually be after 3months of missed payments or under payments or being over limit.
If you just mean that you have '1' markers in your activity they stay on for (usually) 3years and the impact of them decreases over time. In the very short term they will hamper what new credit you can get/what rate, but over time if everything is kept up to date then they will be viewed as less important.

andrewi

Thanks for the reply. Tesco sent me a default notice after I paid on the two occasions I was late by two days. That is why I assume I have the defaults.

Gordon_Hose

Any missed payment markers would show for 6 years also.

Tixy

Some card companies send out £12 default letters but they are not actually legal default notices so it may be they are just missed markers. The legal ones must give you 14days to rectify the account (either pay the arrears or sometimes pay off in full) or they will place a notice of default on your account.

If its a proper legal default notice and you didn't pay within the time then I would suggestwrting to complain as it seems to be too quick for a default to be placed, and not in line with the ICO guidance on issuing a default.