Is a default on credit files bad for 6 years

Andybez38

As title. Is a default always deemed bad, for the full 6 years it's on your files. Does it have less impact after say 2-3-4years etc providing all other files remain up to date.

[Deleted User]

It has less impact the older it gets.

Thrugelmir

The amount along whether it's settled or not also makes a difference.

The finance organisation you defaulted on may never forget though.

Anthorn

Andybez38 wrote: »

As title. Is a default always deemed bad, for the full 6 years it's on your files. Does it have less impact after say 2-3-4years etc providing all other files remain up to date.

No-one knows the answer because it depends on the lender you've applied to. If my credit history and credit applications are anything to go by in general the impact is reduced when the balance reduces. But a default is a default and is bad until it falls off your credit history after 6 years. But some lenders, i.e. Amex, keep records of accounts and perhaps even applications and will know about the default even after it has fallen off your credit history.

Ignoring a default is bad in itself because it could be taken to the county court and then you'll have a CCJ on your credit history for an additional 6 years.