How to get a default removed from your credit file and improve your credit score
- winnie onyekwere
- May 12, 2023
- 4 min read
Updated: Jan 24, 2024
Repairing your credit file by removing any default notices will improve your credit score expendentiously, particularly if you are planning to finance a holiday, a car, a loan, a mortgage or perhaps carry out a house improvement. Therefore what better time to place yourself in the best possible position and focus on obtaining that benefit. It’s always best to deal with any debts sooner rather than later. This can be done with small and sure incremental steps.
Guide to removing a default from a credit file and improve your credit score
Quite often, you might have had a missed payment with a credit card, loan or a buy now pay later payment with your online shopping, and now you have discovered a default on your credit file when making a credit search. With any of these issues in existence, a missed payment can have quite serious impact for your financial wellbeing when it comes to keeping a good credit record. However, here are ways we will share with you despite having a default notice and stay in control of your financial planning.
A default has been added after 1 missed payment.
There needs to be three payments missed in order for a default to be applied to your credit file. So, if you have had a default applied to your file prematurely by the creditor before three months arrears have accrued, then you can raise a complaint with the creditor , the credit reference agencies and to the Financial Ombudsman to have the default removed. This can improve your credit score and make it easier for you to access credit in the future
You were not properly informed by the creditor about the debt.
Check if the default notice is valid and accurate. Sometimes creditors may make mistakes and send default notices without following the proper procedures. You have a right to challenge the creditor if you can show evidence that they did not send letters to notify you of the debt, or you had moved address and you informed the creditor of the move, but the correspondence is still being sent to the old address, or the debt has been paid off. If there is a good case to contact the creditor and request that the default be removed from your credit file and your challenge is upheld, the default will be removed and your credit score improved.
The default was added too late.
The rules say that the default must be added between 3-6 months after debt has been in arrears. If the default has been added after 6 months or later, you are within your rights to request the creditor to remove the earlier default from your credit file. The earlier that it is on your file, more time will have elapsed and the sooner the default will have dropped off your credit file after the 6-year period and your credit score will have improved.
The Debt collector has added a further default.
If a creditor has passed a debt to a debt collector, check that the debt collector has not added an additional default to your credit file. The debt collector is not allowed to add a second default on your credit report. However, if the original creditor did not add a default on your credit file, the debt collector can do so. The default needs to be the date that you defaulted with the original creditor and the original creditor’s name. If you find that you have duplicate default on your credit file or the date doesn’t add up you will be within your rights to complain, get it adjusted or removed.
The debt is unenforceable.
First, if the debt is over 6 years old and the creditor makes an attempt to collect the debt it will be unenforceable. If the creditor tries to apply a default to your credit file, they would be too late. The second scenario is where a creditor is unable to show the existence of a consumer credit agreement. The creditor has no right to legally enforce the debt
You were unable to afford the loan.
When a creditor looks at your application for credit, they are obligated by regulations to assess your affordability to service the credit. This will be calculated by the amount that your earn over the amount that you spend. What matters is that it shouldn’t lead to your inability to afford making the repayments without going into hardship or borrowing more money. If this is the case, you can apply to have the default removed.
Coercive relationship
Finally, another simple way of improving your credit score would be if you were in an abusive relationship and your partner pressurised you into taking out credit. The Financial Conduct Authority have officially recognised that this is a problem. A coercive or abusive relationship is a ground for asserting your rights to getting the debt written off and default being removed. Consider contacting the Financial Conduct Authority
The upshot to wiping a default is paperwork and procedure. If this has been carried out correctly, you have a good chance of getting it removed. This can boost your credit score over time and make it easier for your financial planning and to access other forms of credit in the future
Winnie Onyekwere LLB LLM
RemoveCCJUK.com can help challenge a default against your name as well as any outstanding debts. Should you require help in relation to personal circumstances, please use the Contact Form and we will call you back promptly E: welcome@removeccjuk.com
T:0333 3444 945
Commentaires