Account showing as "default" on MSE credit club

oaktree500

I have an account showing as "default/Ended" on my equifax report. This was fully repaid in the end and shows as "settled" on other reports.

Is this correct for Equifax or can this be challenged/changed?

sourcrates

Did it ever default ?

oaktree500

I think it did, (its an older one), I was mainly wanting to know if there is difference between "Settled" and "default/Ended" ? If not, then fair enough.

sourcrates

An accounts default status is not changed by paying it off.

Once defaulted the default stays for 6 years, if you do pay the debt off, the account will move to the closed accounts section of your credit file.

oaktree500

Ok , it is in the closed section, so I guess it's "ok" ? Like does that impact my score at all?

I'm still very new to a lot of this stuff, so I'm learning as I go. Thanks for helping out. I had seen that terms like Settled/Satisfied mean different things, so wasn't sure if something still showing as default was the same as "satisfied" or not.

middleclassbutpoor

Your score is just a made up number by whichever credit rating agency you are looking at.

The default will show to lenders and how they view this will depend on their appetite of risk they are prepared to take when lending money to you. The default may be fine for a mortgage application for example but it may disqualify you from getting a credit card with a reasonable interest rate or promotional rate. You credit file will be taken in the round together with other considerations.

oaktree500

middleclassbutpoor wrote: »

Your score is just a made up number by whichever credit rating agency you are looking at.

The default will show to lenders and how they view this will depend on their appetite of risk they are prepared to take when lending money to you. The default may be fine for a mortgage application for example but it may disqualify you from getting a credit card with a reasonable interest rate or promotional rate. You credit file will be taken in the round together with other considerations.

Ah yes, I have come to learn that the number itself is made up. Again if anything I was wanting to know if this terminology is the same/correct, which it appears it is.

That is ok then. From my understanding, whilst it would make you more "unlikely" to get credit in the future by having 1 default showing, would having credit currently (as I do in the form of 1 CC and a Loan) help matters if I am paying regularly/on time? (which I am).

Also, I found through my credit report that I am linked to my wife, via a joint account we have. She has several defaults on her credit report, due to defaulting on various payday loans in the past. Due to this link, would that effect my credit report as well? And if I were to remove myself from our joint account, would that improve my report by proxy?

National_Debtline

oaktree500 wrote: »

Also, I found through my credit report that I am linked to my wife, via a joint account we have. She has several defaults on her credit report, due to defaulting on various payday loans in the past. Due to this link, would that effect my credit report as well? And if I were to remove myself from our joint account, would that improve my report by proxy?

Hi oaktree500


Having your credit file linked with someone else is called a financial connection, and it can affect your ability to get credit. You can file a notice of disassociation with each of the 3 credit reference agencies to have it removed once you no longer have the joint credit/bank account.


Best wishes


Susie
@natdebtline