How Long Does A Default Stay On Credit File?
When it comes to improving your financial health achieving a good credit score should be at the top of your priority list. A high credit score can mean an easier life when it comes to obtaining a mortgage, loans, credit cards, insurance and even a job. A good credit score can also mean having more money in your pocket as your cost of borrowing will also go down.
In contrast a bad credit score can mean borrowing costs go up as you pay higher rates of interest and other lending charges. The lower your credit rating could mean you fall into a category where you become untouchable and very few lenders will even consider lending to you.
Understand This First
Before answering the question of how long does a default stay on your credit file, it is essential that you understand how your credit score is calculated.
When you apply for a line of credit the lender will check your credit report to determine your ability to repay. They will be looking at a number of criteria which will include the amount of debts you owe, your payment history, the number and the type of accounts you have and the length of your credit history.
Your record can also record entries that can have a negative affect on your score. These include a mortgage default, County Court Judgments, foreclosures, and bankruptcy. It is important to be aware of these negative entries as they can remain on your credit for a length of time.
How Long A Default Remains On Your Credit Report
A credit account that is marked as a default will stay on your credit file for a period of six years. After six years the record will be removed irrespective of whether the default has been settled or not. When you check your credit file your default accounts will be clearly marked with the reference "default" and these should not be confused with credit accounts that are in arrears.
Although, the a default notice should automatically be removed in some cases these can remain on your file due to clerical errors by the credit collection bureaus. They are responsible for sourcing and compiling the financial data from your creditors. Therefore, it is important that you check your credit file regularly to ensure your personal, employment and credit history details are correct and up to date.
How Long Does A CCJ Remains On Your File?
As with defaults county court judgments will also remain on your file for up to six years. However, if the CCJ has been set aside or canceled by the court of law the CCJ record can be removed. The usual process will involve the Registry Trust Ltd notifying each of the credit reporting agencies who should remove it from your file within 30 days.
If the CCJ entry is still being recorded on your report then, you can dispute it by sending your original CCJ set aside certificate to each bureau to confirm that it is official and request to have the CCJ removed from your file. You can send a copy of the certificate if you are concerned about it getting lost however, this means the bureaus will have to verify the copy with the Registry Trust to ensure the certificate copy is authentic. This will delay the time for the CCJ record to be removed.
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