Finance Glossary
Default
A formal record on your credit file indicating that a credit agreement has broken down — typically after three to six missed payments. Once a lender registers a default, the debt may be passed to a debt collection agency. A default stays on your credit file for six years from the date it was recorded, significantly impacting your ability to access credit.
Example
After missing four payments on a £1,200 loan, the lender registers a default. That default will appear on your credit file until 2031 if registered in 2025.
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