A default hurts your credit score, but how long for? That depends on the default date recorded on your credit file. If a the default date is too late, it harms your credit score for longer than necessary.
The Key Rule to remember is “A default drops off after 6 years”. This always happens, regardless of whether:
- you have repaid it in full
- you made a partial settlement
- you are still making monthly payments
- you aren’t paying it.
For example, a default recorded in May 2022 will disappear in May 2028. So the earlier the default date, the sooner it vanishes from your credit file. This is why default dates matter so much.
This article explains:
- When a default date should be added to your credit file
- How to correct an incorrect default date
- Why, in some cases, a default can be a good thing.
What is the correct default date?
“3-6 months in arrears”
Industry guidance from SCOR (the UK credit reporting body) states the general guide is:
A default may occur when you are three months in arrears, and should normally be recorded by the time you are six months in arrears.
Here are some important specific situations:
Debt management plans and arrangements to pay
- If you’ve missed payments, made reduced payments, or entered a DMP, lenders can record a default after 3-6 months of arrears.
- If your monthly payments are low, the arrears mount up very quckly.
- If you don’t clear the debt quickly, having a default early can be better—because the debt will drop off your credit file six years after the default date.
- Without a default, the debt stays on your file until six years after you finally pay it off – which could take much longer.
At the start of a DMP or an arrangement to pay, you may not want a default – they do harm your credit score more than an arrangement to pay! But if you can’t clear the debt in a few years, having a default is usually better because your credit score will clear up sooner. See DMPs and Credit Ratings for details.
Overdrafts are more complicated – and defaults may be later
- There is no regular or minimum monthly payment to an overdraft, so the concept of “3-6 months in arrears” doesn’t exist.
- You may have abandoned an account with an overdraft and switched to using a different account. But unless you told the bank this or asked for an arrangement to repay it or included the overdraft in a debt management plan, the bank may not have been able to tell.
- So default dates for overdrafts can often be later than you would think.
- If you want a default added because you want the charges and interest to stop, you need to put the overdraft into a DMP or ask the bank for a payment arrangement.
Debt sold to a debt collector
- When a debt is sold to a debt collector, the new creditor should use the same default date as the original creditor did.
- This doesn’t mean you now have two defaults for the same debt – only one of the defaults is counted in credit scoring.
- If the original lender didn’t add a default, you can ask them to add one, then the debt collector will have to use that.
CCJs
- If you have had a CCJ for a debt on your credit record, the default date on the date must be no later than the date of the CCJ.
- The CCJ will stay on your credit record for 6 years, so the original debt will have dropped off on or before the date the CCJ goes.
Insolvency (Bankruptcy, IVA, DRO)
- All debts included in bankruptcy, IVA, or DRO must have a default date no later than the date of insolvency.
- If a lender uses a later date, you can ask them to correct it.
These articles look in detail at how to correct any default date problems after your type of insolvency:
Mortgages
- Mortgages and other secured loans are an exception to the general “3-6 months in arrears” guidelines.
- In 2007 the ICO issued technical guidance on Filing Defaults With Credit Reference Agencies, see paragraph 14 for mortgages.
- A mortgage lender has much more discretion on when to record a default, but it should generally not be later than six months after any repossession.
What can you do if a default date looks wrong?
For some practical examples, see these Financial Ombudsman case studies. They give a feel for whether you can get your credit record changed. Here is an example of an Ombudsman decision telling Nationwide to backdate a default date.
If you think a default date is wrong, complain to the original lender (not the credit reference agency). Put COMPLAINT ABOUT DEFAULT DATE as the subject.
Include key details, such as:
- When you first missed payments (e.g., “I stopped making full payments in early 2018”)
- When you set up a repayment plan (e.g., “I entered a DMP with StepChange in November 2022”)
- What other creditors did (e.g., “Other lenders defaulted my debts in early 2023”)
Then state what you want the lender to do, for example:
- “Please remove the default as I was never three months in arrears.”
- “You should backdate the default to November 2015 based on ICO rules.”
- “My other creditors used a default date of 2021 so this one should match.”
If the lender doesn’t respond within 8 weeks, you can escalate your complaint to the Financial Ombudsman.
Four points to be careful about
1) Only the first default date for a debt matters
Once a debt is defaulted, credit reports show default markers every month.
That looks dreadful on your credit reports, but these don’t make things worse. Credit scoring only considers the first default date, and the entire debt disappears six years after that date.
Don’t complain about the later debt marks – they are normal and will not be changed
2) Is your debt nearly statute barred?
If you haven’t made any payments for years and you are hoping it will get to the 6 years point so the debt is statute-barred, it is probably best not to contact the lender. If you ask them to change the default date then this will acknowledge the debt and “reset the clock”. See Questions about Statute-barred debt for more information.
But also read No calls all letters about a debt for years. Unless the statute barred point is very close, it’s probably better to get the default date sorted.
If the debt is already statute-barred ) then you can safely ask for the default date to be changed, as once a debt is statute-barred it will always remain barred.
If this feels complicated, talk to National Debtline on 0808 808 4000 about possible statute barring and the default date problem.
3) Don’t make your credit record worse!
While defaults harm your credit score initially, they can actually be helpful in the long run:
- A defaulted debt disappears after 6 years—even if unpaid.
- Without a default, the record showing missed payments or payment arrangements stays until 6 years after you settle it, which could be much longer.
Never ask for a later default date – it will keep the debt on your record longer!
4) Your credit record isn’t the only thing that matters
Why should you pay a debt at all if it goes from your credit record after 6 years?
There are two good reasons:
- it stops you getting a CCJ, which would harm your credit record for another 6 years
- seeing that a defaulted debt is settled may makes other lenders more likely to give you credit.
More Debt Camel articles:
How much will my credit score change if…
when the lender is in adminstration
When can you get a default deleted?