Defaults - Increase in Credit Score

BlueFraggle

Hi,

Couple of queries that I am hoping one of you guys can assist with

1) I have a default on my file that is due to elapse in October of this year (6 years after the default date). Once this date arrives will the default disappear from my file and credit agencies can no longer see it?

2) If the default does disappear will be credit score improve straight away and if so by how much?

3) I have another default that is not due to lapse until next year. This one is for a few hundred pounds. If I was to pay this off in full and satisfy the debt, will the default be removed from my file (and this credit score increase)?

Many thanks in advance for any assistance you guys can provide

Cheers

S

MrsTinks

1) creditors searching your file will not be able to see it no. Whether credit agencies can see historical data - who knows. It won't affect you which is what matters

2) yes you might see an immediate change to your largely guesswork score - how much? How long is a piece of string and would you like that in a glass? Your score is largely a guess so don't worry about this

3) You can ask - they shouldn't remove it if you settle it even if it's in full but I guess if you don't ask you won't get right? A settled default will always be better than an outstanding default - ref the score - see above.

National_Debtline

Hi

Yes, the defaulted account will disappear from your credit file 6 years after the default date.

As your credit score is just a rough guide created by the credit reference agencies we can’t say how much it will increase by, as each credit reference agency seems to have their own formula. The defaulted accounts will no longer have a negative effect on your credit history though, which is the most important thing when it comes to making a credit application.

Paying off a debt in full wouldn’t mean the default is removed. It will just be updated to satisfied.


EDIT - cross posted with MrsTinks

Jame
@natdebtline