What does default mean?

Updated 5 months ago

Defaults are applied to accounts after a certain number of payments have been missed, or if you become insolvent. Credit card accounts are defaulted after 6 missed payments, loan accounts after 4 and for car finance accounts, it’s 3.

Default results in your contract being terminated, as the terms were not being met, and your full balance becoming due for repayment. If it looks like you might be heading for default, we’ll send you a notification 30 days before.

It’s important to note that defaults are visible on your credit file for six years and can make it harder to obtain credit in future. If you think you might default, it’s best to get in contact with us as soon as possible so we can work with you to find a solution.

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We’re not able to provide debt advice, but there are others who can. Organisations, such as PayPlan, give free, impartial and confidential advice and contacting them won’t impact your credit score.

PayPlan

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