How to get a default off your file

balood_2

Hi

I plan to apply for a mortgage in about 2 years time and so have finally sorted out my debts. I have number of pay day loans that are in default on my credit report. The question is as I now have come to a payment arrangement will these defaults come off my report at some stage or will they not come off until the whole debt is paid.

That is if after a number of months I continue to make my small payments will the default be removed.

Cheers
Balood

happy_bunny_2

Accounts fall off 6 years from the default date, paid or not.

Not paying could end up in court, a CCJ, which would stay for 6 years from the date granted.

It's not going to be removed before then as long as it's a true record of the account.

HB

MEM62

With a history of taking payday loans and defaulting on them, you will have problems being considered for a mortgage by most mainstream lenders - even if you are squeaky-clean for the next two years.

Pay them off as soon as you can. Keep saving and put back your mortgage plans by a few more years.

thebritishbloke

You will never get a mortgage having defaulted on payday loans. Mortgage lenders often won't lend to someone who's had a payday loan within the last 1-2 years at all, having defaulted on them, you don't have a chance until they all fall off of your file (6 years from the date of default/settlement, whichever is later, so basically, pay it off as soon as possible.)