If you have a mortgage default on your credit file, you might be wondering how long the default will be listed on your credit file. In most cases, a standard default will stay on your credit file for a period of five years, regardless of whether or not you are able to pay it off. When you have a default listed on your credit file, you may find it difficult to be approved for another loan. It’s also possible that your credit score may become lower if you have multiple defaults.
Read on below to find out more about how long a default will last on your credit file.
This could mean that during those five years, you may find it difficult to be approved for a loan. If you happen to pay the default off within those five years, generally, the default will remain file. However, it will be marked off as having been paid.
If you’re wondering what kind of effect a credit default could have on your credit score, it may depend on a few factors. If you choose to apply for another loan after having a default on your credit report, a lender may reject your application as they may class you as a higher risk to lend to.
If you happen to have multiple defaults listed on your credit report, a lender may be less inclined to lend to you, as they may think that you are more likely to default on a loan.
When you have a default on your credit report, you may notice that your credit score will significantly drop, especially if you have more than one default to your name. It’s possible that as the five years pass, your credit score may improve.
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*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.