What Is A Credit Default?

What Is A Credit Default?

A credit default occurs when a borrower fails to make a scheduled payment on their loan. Credit defaults can have serious consequences, including damage to your credit score. Clear credit history and get on track with your finance, read on to find out more about credit defaults.

A debt that has not been paid is referred to as an overdue debt. A consumer payment default is a debt that has remained unpaid for more than 60 days and exceeds $150 in value. If you have a phone bill of over $150 but was due more than 60 days ago, it might appear on your credit report as a telco provider’s payment default.

To list a consumer default, the credit provider must take various actions, including delivering two separate written warnings to your most recent address demanding payment, stating that the debt may be submitted with a credit reporting body, (Equifax, Illion and Experian).

When you default on a loan, your credit report is updated with a note of the event, and it stays there for five years. Potential lenders look to see if your creditable and reliable before accepting a financial application during those five years because the default suggests you have failed to pay off a debt in the past.

Credit cards have a very high rate of defaulting, and when they do, it has a negative impact on your credit score. Defaults are listed on your credit report that considerably lowers your credit rating, which is seen as unfavorable by money lenders. If you want to buy a house or borrow money, defaults might make things difficult for you, and in extreme circumstances, impossible.

Paying your bills on time is the number one way to prevent a credit default or negative listing on your credit file. This can be achieved by setting up direct debits from your bank account or scheduling repayments for pay day. Another way to avoid a credit default or negative listing is to keep track of your credit commitments and only apply for credit when you really need it. This means doing your research before you apply for any forms of credit. Additionally, making sure your contact details are always up to date with your credit providers is crucial as it’s easy to forget to update your address and phone numbers when these change.

However when you do have a default listed on your file, there are ways of improving your credit score and clear credit. Our credit repair team at Credit Repair Ausvengers is here to help you remove these defaults from your credit file and clear credit! We want to help you get back on track with your finances and ensure you a clear credit history for the future. So if you need help when it comes to the removal of defaults or want to know more about how we can help you, get in touch with us today!

Contact Credit Repair Ausvengers right now if you’re looking for a credit file repair expert who can help you rebuild your credit history! Our credit repair experts strive to help you by removing negative listings off your credit file. Don’t wait any longer; give us a call right now for a free credit file assessment and get started with the clear credit process.