Defaults - what is a default?

A "Default" is the term used when a repayment for a loan or bill has not been paid despite reminders.

Usually when a loan repayment or bill payment is missed a reminder notice or two may be sent to your address. If no payment has still been made then a "default notice" is usually issued, formally demanding payment. If payment is still not made then a default will be registered against you and will appear on your credit record. The most common defaults are bank defaults, mortgage defaults and catalogue defaults.

Unfortunately, having a default on your credit record will have an effect on your chances of obtaining credit or a loan in the future, whether a homeowner or tenant, because loan and finance companies usually run a credit report check on your credit record to find out your credit history and find your current credit rating.

Our bad credit loans brokers specialise in helping homeowners and tenants with bad credit history of one default or even 2 defaults or more. Even if you have already been refused a loan because of your defaults please let us see if our bad credit loans brokers can help.

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