Defaulted account
Debt, arrears & collectionsA credit account that a lender has marked as in default due to missed payments.
Overview
Defaults are serious markers that stay on your report for years.
They indicate sustained non-payment or arrears.
Why it matters
- It can reduce access to credit products.
- It can lead to higher interest rates.
- It takes time to rebuild after a default.
FAQs
Can I remove a defaulted account?
Only if it is incorrect. Otherwise it remains for the reporting period.
Does settling the debt help?
Yes. It will show as settled, which is better than leaving it unpaid.
Related terms
Take control of your credit health
Get the complete credit toolkit — all features included.
Start building creditInstant setup. No credit check. Cancel anytime.