If you’ve missed between three and six payments, on a credit account you may be declared in default.
Defaults are serious. Often a lender will automatically decline an application if there has been a default. This is especially the case if the default is within the last year.
Tip: Try and pay off the default. It will show as ‘satisfied’ on your account. Whilst it won’t remove the default, a lender may interpret this as an attempt to clear your debts. As a result, they may be more inclined to agree a loan.