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What happens if you default on a credit card

The step-by-step process lenders follow when credit card payments stop, and where you can pause it.

Credit Cards3 min readReviewed July 2026

Missed payments are reported to your credit file straight away. After around 3–6 months a default notice is issued, and the account is usually closed and sold to a debt collection agency.

The debt itself does not vanish, but interest and charges normally stop once a default is registered. The default stays on your file for six years from the default date, not from when you clear it.

You can usually still negotiate affordable repayments, a token payment, or include the card in a formal debt solution at any stage — the earlier you act, the more options remain open.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.