Default attached to credit rating from Tesco credit card

wannabefree1612

After speaking with Tesco today they confirmed that the default was applied in April 2012 due to missed payments and I set up an arrangement to pay in June, however I did not receive documentation due to moving house which I informed them about. The default appears in my credit file in July 2012, several months after it was applied. The advisor said that the account was defaulted and terminated due to 2 missed payments and because I called to advise them that I was struggling to meet payments. She is sending me a copy of the default notice. The arrangement to pay was set up after the default and I was told that there is no way to get this removed. I find it crazy that missing 2 payments, admitting that I'm struggling and having a small debt of under £400 can mean you're blacklisted for 6 years. The system is awful.

Thanks for the advice guys - it's much appreciated.

izools

Ahh, so you didn't receive the notice because you didn't give them your new address in time and didn't set up a Royal Mail redirect.

Also, a default doesn't "Blacklist" you for six years at all. As long as you keep up repayments on your other credit cards AOK and settle the default you'll find that it doesn't have too negative an effect, especially once it is three years old.

It probably won't have any effect at all for things like utilities and most mobile phone providers providing all your other accounts are in order.

grumbler

There are plenty of posts on the Mobile Phones board where a small default on a mobile contract more than 3 years ago results in rejected mortgage applications.

That said, 6 years is about the right time for saving a decent deposit to be able to get a competitive interest rate on a mortgage.

wannabefree1612

No I hadn't. No excuse, just a very untidy life at that point.

It's heartening that it doesn't completely blacklist me, just annoying that I won't be able to get a mortgage for a very long time and it sets me back a bit. Suppose I should have paid in time though really. I think I could accept it more if it hadn't been settled with them within a couple of months and if was for £1000s rather than a mere £300 Never mind!

Thanks so much for your help. I'll see what the advisor sends me and go from there....and continue to rent... :0/