How is a single default viewed by potential lenders?

ferry

Was asked this question earlier and thought I would run it by you lot;)
Obviously not good,but how 'bad' is a single late payment on a loan or cc viewed by future potential lenders if all other payments are up to date?

Cheers
F x

Chriswright96

It depends really how late it was ...

If it was only a couple of days late, it probably wont even appear on your credit report as a late payment.

However if it was a few weeks or so, it may slightly lower your credit score, but not by much. And as long as you pay the rest of your bills on time, you shouldn't have anything to worry about

DCFC79

Might also depend how long ago it was.

chanz4

5 years fine, before depends on lender

Buzby

Some treat any showing default as having the same negativity as a full-blown CCJ (which is just the way the CRA's planned it). Grossly unfair, but ultimately part of the Govt's 'responsible lending' mantra.

debtcutter

Did you get a default notice? or was it just a late payment?

izools

I was just thinking this.

There's a world of difference between a late payment and a default.

If someone misses 1-2 payments on a single account, their credit score will be seriously impared for six months but the impact should be very limited after 12 months. After 36 months there should be no impact at all.

If someone misses 3+ payments on a single account, this will have a serious negative impact for 12+ months but should have very little impact after 36 months.

If however someone defaults on an account and is issued with a default notice, and the status "8" appears against the account on their credit file, this will have a detrimental effect on their credit worthiness for six years.

If the default is fully settled with a £NIL balance there should be only a limited impact on the applicants credit worthiness 36 months after the default date, but this will vary from lender to lender.

Only once a full six years has passed from the default date of a defaulted account can the account holder be sure that it will no longer have any effect whatsoever, as defaults automatically drop off your file six years from that date, whether or not money is still owed against the account.