Ageing of Default

Mlud001

Hi,

A default that I have on my credit file is approaching the two year mark. Does anyone know how much of an impact will this have on my credit score?

National_Debtline

Hi Mlud001,


The older the information gets on your credit file the less impact it should have, however, it is hard to quantify that. If the debt is still outstanding, it is likely to me more negative than if it is has been settled. But credit files are quite complicated documents, and your history is constantly influenced by many factors to give you your overall rating. Future lenders do not see the score generated by the credit reference agencies, they only see your history. Your history shows things such as whether or not you are on the electoral role, anyone you have financial associations with and, of course, your financial history.


Defaults will have a negative impact, but whether that will mean a credit application is rejected, will depend on the factors mentioned above, the lender and the type of credit.

Laura
@natdebtline

[Deleted User]

Any effect it has on your score is purely cosmetic since the scores are made up.

It will have an effect on your credit file and history but will become less and less of an issue as time goes on and then will drop off after 6 years from the date of default