How to Remove a Default From Your Credit File (UK)
A default on your credit file can make it harder to get credit, mortgages, and even mobile phone contracts. This guide explains what defaults are, how long they last, and what you can do about them.
What is a Default?
A default is a formal notice that you've broken the terms of a credit agreement by failing to make payments. It's typically registered after you've missed 3-6 months of payments and the lender has given up normal collection attempts.
Important
A default is one of the most serious negative markers on your credit file. It can significantly impact your ability to get credit for up to 6 years.
How Long Do Defaults Stay on Your Credit File?
6 Years from the Default Date
Defaults remain on your credit file for exactly 6 years from the date the default was registered. After this period, they are automatically removed by all three credit reference agencies.
The 6-year countdown starts from the date the default was registered, not when you pay it off. Paying a default changes it to "satisfied" but doesn't remove it from your file early.
Satisfied vs Unsatisfied Defaults
- Debt has been paid in full
- Shows responsibility and resolution
- More mortgage options available
- Still visible for 6 years from default date
- Debt remains unpaid
- More serious in lender's eyes
- Fewer mortgage options
- May still be chased for payment
When Can a Default Be Removed?
Unlike CCJs, defaults cannot be removed early just by paying them. They can only be removed before 6 years in specific circumstances:
If the lender made a mistake - for example, they defaulted you while you were making payments, or they didn't follow the correct default notice procedure.
If you can prove the original debt wasn't valid - for example, it was the result of fraud or identity theft, or the credit agreement wasn't properly executed.
If the default contains incorrect information (wrong amount, wrong date, etc.), you can dispute it with the credit reference agencies.
Defaults and Your Credit Score
A default has a significant negative impact on your credit score. When first registered, expect your score to drop by 100-200 points or more, depending on your previous score and the size of the default. This is because credit scoring models treat defaults as one of the most serious risk indicators.
However, your credit score will recover over time as:
- The default ages and has less impact on scoring models
- You satisfy (pay off) the outstanding balance
- You maintain good payment behaviour on current accounts
- You avoid taking on new adverse credit markers
For mortgage applications, many specialist lenders look beyond the credit score number itself. They examine the individual circumstances - when defaults occurred, whether they're satisfied, and your overall credit profile.
Mortgage Lenders That Accept Defaults
Many UK mortgage lenders will consider applications from borrowers with defaults on their credit file. These range from near-prime lenders with competitive rates to specialist adverse credit lenders:
Working with a specialist mortgage broker ensures you're matched to the right lender for your circumstances. See our quick answer on mortgages with defaults for eligibility guidance.
How Defaults Affect Mortgage Applications
Having defaults doesn't automatically prevent you from getting a mortgage. Many specialist lenders work with borrowers who have defaults. Here's what they consider:
How Long Do Defaults Stay on Your Credit File in the UK?
In the United Kingdom, defaults remain on your credit file for exactly six years from the date the default was registered. This timeframe is consistent across all three major UK credit reference agencies - Experian, Equifax, and TransUnion. Understanding this timeline is crucial for anyone planning their financial future, whether you're looking to remortgage, buy a property, or simply rebuild your credit profile.
The six-year rule applies regardless of whether the default is satisfied or unsatisfied. However, the impact of defaults on your credit report diminishes over time, particularly after the first three years. Many UK mortgage lenders become more flexible once defaults are over 24-36 months old.
Key Points About Default Duration in the UK
- Defaults are automatically removed exactly 6 years after registration - no action required from you
- Paying off the debt does not remove the default early, but changes it to "satisfied"
- The countdown starts from the default date, not when you eventually pay it off
- Multiple defaults each have their own 6-year countdown starting from their individual registration dates
- After removal, there is no trace of the default on your UK credit file
If you have defaults on your credit report and need mortgage advice, our default mortgage specialists can help identify lenders who will consider your application based on when your defaults were registered.
What Are Defaults on a Credit Report?
A default on your credit report is a formal marker indicating that you have failed to meet the terms of a credit agreement. In the UK, lenders typically register a default after you have missed between three and six consecutive monthly payments. Before registering a default, the lender must send you a default notice giving you 14 days to bring your account up to date.
Defaults can appear on various types of credit accounts, including credit cards, personal loans, mobile phone contracts, utility bills, and catalogue accounts. Each default is recorded separately on your credit file, showing the original creditor, the amount owed, and the date it was registered. Understanding what defaults mean for your creditworthiness is essential when applying for bad credit mortgages or other financial products.
Types of Defaults and Their Impact
- Credit card defaults: Common and usually viewed less severely than secured lending defaults
- Personal loan defaults: Moderate impact, lenders assess based on the amount and age
- Mortgage defaults: Most serious type - significantly limits future mortgage options
- Utility and telecoms defaults: Less severe but still affect your overall credit profile
- Catalogue and mail order defaults: Considered minor but add to your adverse credit history
For a quick overview of how defaults affect mortgage eligibility, see our mortgage with defaults guide.
How Defaults Impact Your Credit Score
Defaults are among the most damaging entries that can appear on your credit file. When a default is first registered, you can expect your credit score to drop significantly - often by 100 to 250 points depending on your starting position and the credit scoring model used. This substantial drop reflects how seriously UK lenders view payment failures.
The relationship between defaults and your credit score is not static. As time passes, the negative impact gradually lessens. Most credit scoring algorithms weight recent activity more heavily than historical data, meaning a default from four years ago will hurt your score far less than one registered last month. Additionally, satisfying (paying off) a default typically provides a modest score improvement.
Factors That Influence Credit Score Impact
- Age of default: Newer defaults have a much greater negative impact than older ones
- Amount defaulted: Larger default values can indicate higher risk to lenders
- Number of defaults: Multiple defaults compound the negative effect on your score
- Satisfaction status: Satisfied defaults are viewed more favourably than unsatisfied ones
- Recent credit behaviour: Good payment history on current accounts helps offset old defaults
Despite the score impact, many specialist lenders focus on your individual circumstances rather than just the number. Our default mortgage page explains which lenders may still approve your application.
When Are Defaults Removed From Your Credit File?
Defaults are automatically removed from your UK credit file exactly six years after the date they were registered. This happens automatically through the credit reference agencies - you do not need to contact them or take any action for the default to be removed. On the six-year anniversary, the entry simply disappears from your credit report.
It's important to understand that paying off a default does not trigger early removal. While settling the debt is generally advisable and changes the status to "satisfied," the default marker itself remains visible until the full six-year period has elapsed. This is different from CCJs, which can be removed early if paid within one month.
Timeline for Default Removal
- Day 1: Default registered on your credit file - maximum negative impact
- Years 1-2: Significant impact - limited lending options available
- Years 2-3: Impact begins to reduce - more near-prime lenders may consider you
- Years 3-4: Moderate impact - wider range of bad credit mortgage options open up
- Years 4-6: Reducing impact - some mainstream lenders may accept satisfied defaults
- After 6 years: Complete removal - no trace remains on your credit file
If you're wondering whether to wait for defaults to drop off or apply now, speak to our advisers. We can assess your full credit profile and recommend the best approach - sometimes waiting a few months can significantly improve your options and rates. Learn more at our mortgage with defaults page.
Frequently Asked Questions
Defaults stay on your credit file for 6 years from the date the default was registered. After 6 years, they are automatically removed by the credit reference agencies.
A default is recorded when you've missed payments on a credit agreement (usually 3-6 months of missed payments) and the lender has given up trying to collect. It's a serious negative mark on your credit file.
Defaults can only be removed early if they were registered in error, or if you can prove the original debt wasn't valid. If the default is accurate, it will remain for the full 6 years.
A satisfied default means you've paid the debt in full. An unsatisfied default means the debt remains unpaid. Satisfied defaults look better to lenders, though both stay on your file for 6 years.
Yes, defaults significantly impact your credit score. They're one of the most serious negative markers. However, their impact lessens over time, especially after 3 years.
Yes, specialist lenders consider mortgage applications from people with defaults. Your options depend on the default amount, age, whether it's satisfied, and your deposit size.
Generally yes - a satisfied default looks better than an unsatisfied one. However, paying won't remove it from your file early. The 6-year period runs from the original default date.
Check your credit report with Experian, Equifax, or TransUnion. You can access free reports through services like ClearScore, Credit Karma, or directly from the agencies.
Have Defaults and Need a Mortgage?
Defaults don't have to stop your homeownership dreams. Our specialist mortgage advisers work with lenders who consider applications from borrowers with defaults.