What happens when you default on an account?

A default shows that your relationship with a lender has broken down. If a lender decides that you’re not likely to pay back the money that you’ve borrowed, they may default the account.

Missing too many payments will result in a lender deeming you a high risk. You may receive a notice of default, and if you are unable to pay the full amount within 14 days of receiving it, the account will default. This will reduce your chances of getting credit and likely lower your credit score.

Your Checkmyfile report shows all your information in one place, so if you have a default, you’ll be able to see it in the Payment History section. Even defaults that have been paid will stay on your file for six years.

Repaying a default is a green flag in the eyes of lenders. If you can pay what you owe, you’ll be on the path to better credit health. When the default drops off, you should see your score grow, as long as you’ve maintained your other credit agreements.