Default v Account Settled

RebuildingMyLife

Hi I am new to the boards and trying to rebuild my credit status to hopefully apply for a mortgage over the next few years. My question is, I understand the 6 year rule however is this from the date of the default eg July 2012 or the date the account was settled eg July 2015?

National_Debtline

Hi

In terms of debts showing on your credit file, if you have defaulted on a debt it will show for 6 years from the date of the default and then drop off entirely. If the debt hadn't defaulted it would show for 6 years from the date it was settled.

James
@natdebtline

RebuildingMyLife

Thanks James! That's excellent, this info has turned my 5 year plan into a 2 year plan - Thank you!

Austinhead

Just read this with interest. I have a couple of defaults, and although i'm paying them off each month, they show as defaulted every month. Does the above still apply, or will they continue to show on my file for 6 years from the date of the latest default ?

[Deleted User]

6 years from original default.

Experian_company_representative

Austinhead wrote: »

Just read this with interest. I have a couple of defaults, and although i'm paying them off each month, they show as defaulted every month. Does the above still apply, or will they continue to show on my file for 6 years from the date of the latest default ?

Hi Austinhead, I'm glad to say that the above will still apply.

If you are making payments to the account then the lender may be sending regular updates to the credit reference agencies.

This will not change the date that the information is removed from your credit report though, it will still come off the report six years from the date of the default.

Kind regards
Neil

Austinhead

So even though I could still be paying it off 6 years after the original default, it will no longer be shown ?

Does this also mean that my credit rating should improve significantly then ?. Like most people, i had a rough time a few years ago, but have been back on track for over 4 years now.

[Deleted User]

Austinhead wrote: »

dit rating should improve significantly then ?

It means that the default will no longer be visible, which, all things being equal, will be a positive in the way that lenders see you.

You don't have any single credit rating - just a credit file (or 3 files, to be precise).

Austinhead

Excellent, i look forward to that day. Always feels rather harsh to be judged on something that happened several years ago, without taking into account how my circumstances have changed for the better.