Experian File - score dropped 716

kimi1977

Evening,

I logged back in and paid for my experian credit score this evening and was shocked to find my score had dropped to 257 from 973 in the last year.

You have a defaulted or delinquent account
You have made 1 or more late repayments on your active credit accounts within the last 6 months.

The reason is that during sickness/out of work last year, 1 card (MBNA) I agreed to pay min payment and freeze interest until I was back in work again (which I am recently) the arrears built up to £560 but has registered as 5 missed/late payments as I paid £54 month not £120 approx as I should.

If I now pay the arrears would it still take 6 years for this to balance out on my credit score?

I was under the impression my score would drop if I defaulted but seems to have dropped in the same dramatic way for agreeing a short term min payment.

My other accounts are showing as up to date, phone, car etc.

[Deleted User]

Ignore the score, it is pointless, nobody sees it but you.

What matters is the information on your report. You defaulted on your credit card, this default will remain on your account for six years.

kimi1977

I havent defaulted though, as it has not been 6 months? I have been late making full payments, but it doesnt state an actual default anywhere, neither have I received a default letter. I will ask card company Monday

[Deleted User]

You have defaulted because you haven't paid back what you initially agreed to pay. You say it was last year, how long ago?

They should have notified you of the default though.

kimi1977

Last September I have been making min payments since

Have received no default.

[Deleted User]

And when did you first miss a payment?

Bear in mind that even when you were paying £54 a month you should have been paying £120 so this will be registered as a missed payment. So that's probably why it's showing as a default now- although they should have notified you.

kimi1977

September first missed payment, they informed me that after several months I would received a default notice. I said at the time I would be in employment hopefully again by then.

[Deleted User]

Okay so they told you that you would default, and now you have.

Have you moved, do they have your most up to date address? Do they have the right email address for you?

To be honest whether they sent you a default notice or not, it seems to me they told you were going to default either way.

kimi1977

They told me I would default if I did not resume normal payments after several months. It's not been 6 or 7 months, and I resumed normal payments. Best thing I can do is call them monday I think and get an actual answer on the default.

[Deleted User]

'Several months' does not automatically mean 6 or 7 months. Some companies will default you after 3. If they weren't more specific than 'several' than you probably should have asked.

Thrugelmir

kimi1977 wrote: »

I havent defaulted though, as it has not been 6 months?

A default in legalistic terms is when a repayment is not made in accordance with contractual terms. This is irrespective of a formal default notice being recorded on your credit history. The conduct of the account is what is driving the score given by the CRA downwards. Likewise any lender viewing your history will factor this into any decision they make in accordance with their own internal lending policy. As time passes the impact will diminish.