A default is a marker placed on a credit file when an account is not paid as agreed over a sustained period, typically three to six months of missed payments. It signals the lender considers the agreement broken and stays on file for six years.
In one line: A default records that an account fell seriously behind, and it remains on a credit file for six years.
How a default works
A lender issues a default notice when payments are missed over a sustained period, usually between three and six months. Once recorded, the default marks the account as broken on the credit file.
On a credit card 800 GBP in arrears, a default might be registered after several missed minimum payments. It then stays visible for six years from the default date, even if the balance is later cleared.
Paying the debt after a default does not remove the marker; the file instead shows it as satisfied, which can read more favourably than an unpaid default.
Default vs missed payment vs CCJ
A single missed payment is less serious than a default, which reflects a sustained breakdown. A County Court Judgment is a separate court order that can follow if a creditor takes legal action.
A default drops off six years after it is registered regardless of whether it was paid, although a settled default is generally viewed more positively than an outstanding one.
Primary source: Information Commissioner's Office: credit defaults