You have an older or larger default on your credit file

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 large. It can even be the case if the default was from a long-time ago.

Importantly, defaults remain on a credit file for six years. Once a default is on your file it cannot be removed.

Tip: If the default was from almost three years ago, it may be worth just waiting for time to pass. Defaults over three years old, provided they are smaller, are often ignored by lenders.