How can you contest a default on your credit file?

What options do I have if there is a default on my credit file?

A default is a formal marker placed on your credit file which denotes that you have missed a payment on a financial contract such as a loan, credit card, mortgage, or a household bill.

If you’ve had a default placed on your credit file it can affect your financial situation in a number of ways. The drop in credit rating makes it more difficult to obtain borrowing, and in some cases, it can even affect your employment.

Defaults remain on a credit file for six years so this is a long-term impact rather than a temporary inconvenience. This is why if you believe the default is incorrect, it’s important to contest it so your credit record can be updated to reflect the true situation.

But how can you contest a default on your credit file, and what is the first step to take?

Order a credit report from the main credit reference agencies (CRAs)

Three main credit reference agencies exist in the UK – Experian, Equifax, and TransUnion. The information held with each one can differ, however, so it’s important to order a copy from each agency.

If a default appears on one report, it could also be present on another, in which case you may need to contest an entry two or more times.

You are only able to contest a default on your credit file if you believe it has been marked in error. If you have missed the contractual repayments on any of your debts, the default will remain.

If you have defaulted on your bills or other debt repayments, you should take this as a sign that all is not well with your financial situation and seek professional guidance as soon as possible. 

There are a range of debt solutions out there designed to help people just like you escape their debt problems. For immediate help and advice as to your options please call Scotland Debt Solutions. We specialise in helping Scottish residents to escape debt, and can help you work towards a debt-free future.