DMP, Defaults and Credit report.

..ukeuro

Dear All. I am just seeking clarity / confirmation about my credit file. I hope someone can advise. I commenced a Debt Management Plan with Payplan in January 2009. I hope to have paid all my debts off by October 2014. Do the defaults remain on my credit file 6 years from when they were put on (ie 6 years from 2009) or 6 years from when debts are paid off, which in my case would be October 2020? Also, is it only when the defaults are removed that I can then start to improve my credit rating? I have looked at my credit report, and it seems full of defaults, month after month due to reduced payments etc. Many thanks!!

matttye

6 years from when they're put on, they come off. The account is updated to show it's still in default each month, but it's not a new default. This means that even though it's showing a default marker each month, as some do, it's the first one that counts.

You can improve your creditworthiness with defaults, but you're unlikely to get any 'prime' credit until they drop off.

..ukeuro

Thank you Mattye