What a default really is — and when one can be registered

A default marker is added to your credit file when an account is significantly in arrears — usually between three and six missed payments. The lender must first send a Default Notice giving you at least 14 days to remedy the situation, and it can only report a default if the account is genuinely 'broken down'.

Once recorded, the default stays on your credit file for six years from the date of default — even if you later pay the balance in full. Paying doesn't remove it, but it does mark it as 'satisfied', which lenders view more favourably.

A common frustration is defaults that are registered years after the account went into arrears. This is often against the credit reference agencies' guidance, and you can complain and ask for the default date to be corrected — sometimes shortening the reporting period significantly.