When you sign up to a credit agreement, such as a mobile phone contract, you’re promising to abide by its rules. This includes when you’ve got to make repayments.
The agreement will likely include how much you have to pay, and by when. If you miss one or more payments, you’re not fulfilling your end of the contract.
How this affects your score
When you miss several payments on an account, the lender may mark the account in default. Information relating to missed payments and defaults will stay on your report for 6 years.
How long will this affect my score?
Lenders will see this as a negative factor but they’ll pay less attention the older the record is.
How to manage a default
If you have defaulted on an account, the best thing to do is to set up a repayment plan and avoid borrowing any more until your debt is more manageable. Once your debt is under control, you could try using a credit builder card to carefully rebuild your score.
How to find these defaults on your report
Start by looking through your ‘Accounts’ section and the payment history for each account. You should be able to spot any missed payments or if the account was ever marked in default.
If you have any missed payments or are worried about your credit report and this is stopping you from applying for a mortgage, come and see us at Mortgage Solutions Belfast.
We will check your report and see how we can help to get you mortgage ready. Don't be afraid to ask for help!
Give us a call on 02890 642000 or find us on our socials.