what constitutes a default?

luvleighr

Can sombody please clarify what constitutes a 'default' on a credit file please?

I have recently had 2 financial 'blips' and am not sure if they will affect my credit rating and how (forgive my naivety).

my first was at the end of my phone contract I was late paying the final payment (only £15) as it had been going out by direct debit & I didn't realise that the final payment when the contract is cancelled is expected to be paid by other means.

The second was forgetting to pay the first payment on my new credit card (hadn't set up the direct debit - der).

These are both now paid in full.

Has anybody any idea if these are considered defaults or how they are likely to affect me if I apply for a loan pleeeeease?

Many thanks in advance.

TAG

They are not defaults. But will each show on your credit report as a '1'.
i.e you were 1 month behind with a payment.

h4nym

Hiya

One missed payment simply goes down as that. A default normally represents a formal notice after 3 missed payments, and it's notice that further proceedings may be launched. So, for example, if you missed 3 payments on a credit card, you'd probably get a Default Notice sent to you demanding repayment of the whole lot. Failing that, they will "reserve the right" (or words to that effect!) to take further action to recover the debt.

Only missing one payment will show as just that and your credit record will reflect that for 36 months and then eventually drop out.

It's unlikely to cause too much trouble with a loan application, but of course it depends on lots of factors - including your wider (good?!) credit history, earnings etc etc.

Hope this helps

H