Default / Delinquent Card

redpete

You-kip wrote: »

You forgot to mention that going by statistics from forum users on here is Defaults are not taking into account on your scoring and can actually improve your score.

How many users on here have 2 year old defaults scattered on their credit reports yet your very intelligent credit scoring module put these people on the excellent chart.

You might be confusing the score that you can get from the credit rating agencies and the rating that a lender applies partly as a result of the information (not the score) they get from the CRAs.

The former might have little relation to the likelihood of you getting a loan, the latter will but you won't see an actual number or a list of the criteria used.

The_Boss

redpete wrote: »

You might be confusing the score that you can get from the credit rating agencies and the rating that a lender applies partly as a result of the information (not the score) they get from the CRAs.

The former might have little relation to the likelihood of you getting a loan, the latter will but you won't see an actual number or a list of the criteria used.

That is exactly the point You-Kip is making - that the Experian score is misleading.

Buzby

Gordon_Hose wrote: »

You can't just get rid of the record. If the card was yours and you defaulted the entry will stay on your file for 6 years (5 in Scotland).

6 years for Scotland too. The CRA's pay no heed to Scottish Court timeframes of defaults. They deem it a 'reasonable' period and they have yet to be successfully challenged to fall in line with the law of the land. This may be forced on them however, following independence.

Gordon_Hose

Buzby wrote: »

6 years for Scotland too. The CRA's pay no heed to Scottish Court timeframes of defaults. They deem it a 'reasonable' period and they have yet to be successfully challenged to fall in line with the law of the land. This may be forced on them however, following independence.

Read the thread. I don't need to be told twice.

Buzby

Experian_company_representative wrote: »

Settling a default won't affect how long it stays on your credit report for - this will still be six years from the default date. But it should help your creditworthiness in the meantime as satisfied defaults look much better than outstanding ones.

James Jones

I would suggest this is marketing nonsense - a default, whether outstanding or settled have equal weight when it comes to causing problems for an individual. There may be the odd instance when a manual review takes place and the enquirer makes a judgement call, but for the information gleaned here, ANY default irrespective of status, is a killer.

We used to have the right to challenge a CCJ in court, but these so-called CRA 'defaults' are so much cheaper to administer, and no pesky issues with the possibility of losing in court and having to pay solicitors/costs.

This is why after any default, there is no incentive for the debtor to pay as the damage has already been done for 6 years, irrespective of their willingness to make amends.