Will My Default Be Removed If I Pay It Off?

Your credit score is something that you should always be aware of. A low credit score can mean that you have a hard time getting approved for a loan, or even getting a job. One thing that can negatively affect your credit score is having a default listed on your report. If you have been struggling to make your payments, but are now able to pay off your debt, you may be wondering if the default will be removed from your credit report. In this blog post, we will discuss how long a default stays on your report and what happens when it is paid off.

In short; No it does not.

A default does not go away just because you pay off the debt. If you pay back the debt, the default will remain on your credit report. Also, if you have other loans and can continue to make timely payments on them, your excellent repayment history may help to reduce the negative impact of the default on your credit report and score.

The bad information connected with an account will stay on your credit report for seven years after the initial missed payment, even if the account is eventually paid off. The payment history of the account will be updated to show that there is no longer a balance owing, but your credit report will still reflect the payment history of the item.

When a default listing is removed from your credit report, it’s typically due to one of three reasons. These circumstances are only applicable in the case of a mistake by the credit provider or because of something outside of your control (such as a natural disaster or bank error).

If you have been declined credit, or are finding it difficult to get approved for a loan, then contact the credit repair experts at Clear Credit Solutions today. We can help to remove negative listings from your credit file, such as defaults, court judgements and fraudulent enquiries, which will give you a better chance of being approved for a loan. Our team of experienced professionals know how to improve your credit rating quickly and easily so that you can access the finance you need. Contact us today for more information or visit our website to learn more about our services.

Having a clear credit history is important if you want to apply for finance. If you have defaults, court judgements or fraudulent enquiries listed on your credit report, it is likely that you will be declined by lenders. Clear Credit Solutions can help remove these listings from your credit file, so that you can improve your chances of being approved for finance. Contact our team of credit repair experts today to find out more about how we can help you remove bad credit.

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