Glossary · Credit

Default (credit)

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Content updated: 26 May 2026

By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: A formal notice from a lender that an account has broken down — typically after 3–6 months of missed payments. Stays on your credit file for six years from the default date.

Under the ICO's principles for reporting arrears, a default should normally be recorded after a debt is at least three months in arrears and usually before six months. Paying or settling a defaulted account does not remove it but changes the status to 'satisfied'.

Primary source: ico.org.uk

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