Default removal after 6 years

Technoholic

Hi

Just after a quick bit of advice. After having settled a number of defaults over the years, I have got myself into a pretty good situation in the last few years, we are planning on buying a house and want to get an AIP as soon as possible as we hope to find something asap, we are just waiting for my credit file to be clear. my last default was settled 4 years ago and was registered 5 year, 11 months and 28 days ago, so is due to be removed any day now. My question is, is the process for a default being removed after 6 years the same as when a lender manually removes one, for example if they make a mistake or something? Therefore do i have to reply on the lender to send an update or will the agencies just clear it down after the anniversary of the default? I've had a few removed before but can't remember how it worked and want to know how quick it might be

Thanks

fermi

The Credit Reference Agencies should drop the account off automatically. You should not have to do anything.

Callcredit/noddle usually take it off a little bit before the 6 years are up. Experain/creditexpert usually dead on the 6 years. Equifax often a bit of a delay.

Tixy

It will automatically be removed.

On experian and noddle it will happen on the anniversary. On equifax it takes a couple of extra weeks (it shouldn't be it does).

Technoholic

great, thanks for your replies!

Technoholic

Just a follow up question...

I know this might sound silly, but its been so long that i have been "credit file clean" that it feels weird to finally be at that point. What i want to ask, is that after the default is removed, am I just like any other run of the mill person who never had a default? Is there any long term negative effects after all defaults have been removed and can I just go (hypothetically if i wanted to) to any high street mortgage lender or for example, can I consider applying for things that say you need "good credit" etc? This is all purely hypothitcal, but just want to know if im back to "normal".

Outside of the defaults, my credit file is pretty good. Fair number of well managed settled accounts, no overdrawn accounts or anything like that, only a HP for car finance which is being managed well, so basically a report like many others I imagine

fermi

As far as your credit report is conferenced it will be as clean as anyone who has never defaulted.

BUT, if say a mortage lender ask "have you ever defaulted on a credit agreement etc" then you would have to declare it.

Also obviously lenders may keep their own records that you defaulted with them or a member of their group.

Technoholic

I see, I do know that lenders can keep records of that but does that often come back to bite people?

And i havent done thousands of credit applications in my life but Im not sure ive come across them asking if ever ever defaulted, possibly if ive ever been on IVA or had a CCJ but thats it, which ive had neither. So i guess im asking if that question does come up much and how much both of these things are likely to be limiting in the future?

Tixy

I don't think it comes up often, but it may on a mortgage application.

In terms of past defaulted debts of more than 6years ago a lot of lenders don't seem to see it as an issue, or even keep a record of it. Some lenders do.

sirwiggum

Surely if you say 'yes' to having defaulted at some point, you'll instantly be declined?

And if you say 'no', technically you're lying / fraud?

So ever having a default, even after the 6 years, means never getting a mortgage?
Especially if you defaulted with a company linked to the proposed lender (and a lot of banks are connected now)

Tixy

So ever having a default, even after the 6 years, means never getting a mortgage?

No. Its often possible to get a mortgage whilst a default is still on your file (maybe not at the best rates but still often possible).

Its certainly possible to get a mortgage after a default has dropped off. It is even possible to get a mortgage after having been bankrupt.

And certainly not all mortgage lenders ask if you have ever defaulted, although I believe some do.

Technoholic

I understand being penalised for managing your finances badly by issuing defaults, or CCJs or worse case, bankruptcy, but i find it difficult to believe that making some mistakes in your past (in my case over 7-8 years ago) should haunt you forever. I'm nearly 30, can't imagine being 50+ and still having to worry about those mistakes i made as a young adult still affecting me.

I know on many credit applications its asks if you have had CCJs or bankruptcy, which I can understand more, but asking if you've EVER had a default seems harsh even by my standards, and my standards totally agree that you should be penalised for being reckless. I wish I knew which lenders ask for that information