Default
Debt, arrears & collectionsA marker added to your credit report when a lender closes an account after missed payments.
Overview
A default indicates a serious missed payment issue where the lender believes the account is unlikely to be repaid as agreed.
It is more severe than a single missed payment and can significantly impact your credit profile.
Why it matters
- Defaults can reduce access to credit products.
- They can affect interest rates and eligibility.
- Rebuilding after a default requires consistent positive history.
FAQs
Is a default worse than a missed payment?
Yes. A default indicates ongoing missed payments and is more serious than a single late payment.
Can a default be removed?
Defaults can sometimes be removed if they are incorrect, but otherwise they remain on your credit file for a period of time.
Related terms
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