How do I answer this question..?

ferry

I'm currently on the lookout for my next best CC deal.
I've noticed on the applications that you get asked if you've "defaulted on any credit payments in the last 3 years".
In 2005 I entered into a "payment arrangement" with Halifax and its been noted on my credit file-but I hadn't missed a payment or made a late one and settled early during that arrangement.
Is the fact that I had this arrangement in place seen as a "default" by any potential lenders..?

Not sure how I should be answering this question..

Cheers as usual
ferry

sarahs999

I'm no expert, but I'd say that's not a default. I'm sure someone more knowledgeable will be along in a minute...

ferry

Can anyone confirm..?

Ferry

ayeaye

A default would be noted on your credit file as such - does the account in question show default on the credit file?

If there's no default shown on the credit file then you've not defaulted on any accounts. When a default is recorded, it's at the stage that the account is closed no further borrowing will be allowed etc. and you would know about it!

jonesMUFCforever

I agree that you need a copy of your credit files to see what is on there.

ferry

Cheers guys..just to clarify..a late payment is NOT a default on a credit file and a 'payment arrangement' is not a default unless the creditor has specified this particularly on a credit file..?

Is this right?If so how severe is a payment arrangement seen in the eyes of future creditors?

Many thanks again
Ferry

ayeaye

All depends on the lender's scoring policies - some may view it more seriously than others. Will also depend on the length of the arrangement as this is recorded on the credit record, if it was only a couple of months that's probably less of an issue than over a couple of years.