Implication of a default on credit file?

Islington

As someone who has never worked in finance or had a default, I am guessing that a creditor adding a default to someone's credit file, due to them being on a debt management plan with StepChange, will mean nobody will offer them credit again; no more or less. Does anyone know more than me of the implication?

worried_jim

You can still get credit but it will be expensive such as 39.9% on a Vanquis credit card, fine if you pay it off every month but painful if you don't.

Mortgages will be more expensive and you may not get high street rates as you will be sub prime. Nothing is impossible just a load more expensive. Avoid a default if you can as it will impact you for six years but there is always light at the end of the tunnel if you can't.

Islington

Thanks, forgot to ask, is a default on my credit file by one creditor likely to make other creditors lower my credit card limits, if they know?

[Deleted User]

Possibly. More likely they will increase your interest rate though.