What is a default?

[mumandco]

Sorry for what may seem like a stupid question but I'm not very clued up on stuff like this,il explain the background and hopefully someone can help
My friends partner was looking for a loan and he looked at getting one with his bank but he had to have no defaults in the past 6years! Not sure whether he went ahead with the loan but I was curious as to what "defaults" are my friend didn't know herself was unable to tell me and her partner wasn't around to tell us!

 

[luci and bump]

As far as I know, a default is if you have credit cards or loans already, and you miss payments.
Hope that helps

 

[mumandco]

Ah thanks for that I thought it might have been that but wasn't sure so is that the same on anything on credit like a buy now pay later account??

 

[Dinah93]

A default is a letter written from a creditor to a borrower when they are behind in payments, usually by 3-6 months. The default will be recorded on the credit file of the borrower for 6 years, and make it much harder to obtain new credit. Missing one or two payments or being late is unlikely to result in a default notice, however this will still show up on your credit report as a missed payment.

 

[supertabby]

A default is either 6 or 8 missed payments (can't remember which now). On your credit record it will show all your credit agreements - loans, current accounts, phone contracts etc - with your monthly payments for the last year marked as green (paid on time) or amber (missed) and then if you have 6 or 8 amber ones the next one will be red - meaning default.

For current accounts it will always be green unless you have gone over any agreed overdraft.

Missed payments that don't turn into defaults don't show up after about a year but defaults stay on your record for 6 years.