Having a default on your credit file means a harder time getting credit cards, loans, mobile phone contracts, or even opening current bank accounts.
A default on your credit report can feel like a black mark that won’t go away. After all defaults typically stay on your report for six years. But there are situations where you can get a default removed—you just have to know how to approach the company that reported it. Here’s what to know if you want to ask a company to remove a default from your credit history.
What is a Default, Anyway?
Before we dive into getting defaults removed, let’s make sure we all understand what a default is in the first place.
A default occurs when you miss one or more payments on a loan or other credit account. Specifically, it happens when you are delinquent on payments for a certain period of time, usually at least 90 days. The company you owe money to can then report this default to the credit bureaus.
This default will show up on your credit reports at all three major credit bureaus—Equifax, Experian, and TransUnion. And it will negatively impact your credit scores with all three as well
How Much Do Defaults Hurt Your Credit?
Defaults can seriously drag down your credit especially if you have good credit to begin with. For example, someone with a 780 credit score could see their score drop by over 100 points after a default.
The impact happens because defaults speak to your track record of repaying debts on time. Since payment history is a major factor in credit scoring models, a default signals risk to future lenders.
It’s not impossible to recover from a default, but it does take time. Even after it falls off your reports, it can take a while to rebuild your scores.
When Can You Ask for Removal?
The first thing to know is that companies are not obligated to remove valid defaults from your credit reports. If you legitimately missed payments and they properly reported it, chances are slim they will erase the default just because you ask nicely.
However, there are certain situations where you may have grounds to request removal. Some of the main ones are:
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You paid the debt: If you eventually paid the debt in full, you can ask the company to remove the default from your credit history. They are more likely to consider this if you settled up quickly.
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It was an error: Companies do make mistakes sometimes. If you have proof you were never actually delinquent, you can absolutely push for removal due to error.
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It was filed late: If the company failed to report your default in a timely manner, they may be willing to remove it rather than have it stay on your report longer than the standard six years.
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Financial hardship: You may be able to get some sympathy if you defaulted because of unusual circumstances like job loss or major medical issues.
The earlier you address the default, the better your chances of removal. Once it has been on your reports for years, companies have little incentive to delete it.
How to Ask for Removal of Default
If you determine your situation warrants asking for removal, here are tips for doing so successfully:
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Get proof. Gather concrete evidence like bank statements, communication with the company, or doctor’s notes. You need to back up your claims.
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Make your case. Clearly explain in writing why the default should be removed according to the credit reporting rules. Be specific.
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Submit to credit bureaus. Dispute the default with Equifax, Experian, and TransUnion providing your documentation. This can help pressure the company to remove it.
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Appeal a denial. If your dispute is denied, resubmit your claim with additional evidence. Consider contacting regulatory agencies if the denial seems unlawful.
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Enlist help. You can hire credit repair agencies to handle the back-and-forth negotiations and disputes for you if needed.
Don’t Delay
Time is of the essence when trying to remove defaults from your credit history. The longer you wait, the more of an uphill battle it becomes. Monitor your reports regularly and be proactive about addressing any negative items that should not be there.
While defaults are stubborn, they are not always permanent if you take action quickly. Arm yourself with the right information and be persistent if you truly believe a default is inaccurate or invalid. With some finesse, you can potentially improve your credit standing.
How long does a default last?
A default will remain visible on your credit report for six years, even if you pay off the debt entirely.
During these six years, youll find it difficult to get any kind of loan, even a mobile phone contract. Getting a mortgage, of course, will be especially difficult.
And even when you get approved, you might be asked to pay higher interest rates.
How do I remove a default from my credit report?
There are two ways to remove a default from your credit history: wait six years or submit a Notice of Correction.
Once six years have passed, the lender cannot re-register the default – even if you still owe money. Thats not to say that the debt is gone. You should still continue to make any remaining payments, as the lender could go on to register a CCJ against you. A CCJ will be visible for another six years on your credit report and is also generally seen as much more severe than a regular default.
The second way to remove your default is possible only if you prove it was an error. This is how the process works:
- Get your credit report from all three credit reference agencies (Experian, Equifax, TransUnion)
- Spot the error
- Contact the agency where the report was incorrect (all three if needed)
- They will contact the lender and ask them to verify.
- In the meantime, the agency will add a “Notice of Correction” to your credit report.
- If the lender agrees that the data was incorrect, the credit reference agency will update your credit report.
- If the lender disagrees with you, the default will stay on your credit file. In this case, the agency will let you know and help you understand what you can do next.
There are three important things to remember here.
First, Experian, Equifax, and TransUnion do not have the power to remove or change a default without the lenders permission. They can only mediate the dispute.
Second, you should regularly (once a year) check your credit report to ensure everything is correct.
Finally, even if you cant get a default removed, submitting a Notice of Correction is still worthwhile. It signals to other lenders that the default might have been a mistake and gives you a chance to explain the situation.
How to Get a Default Removed from your Credit File
FAQ
Can you ask for a default to be removed?
Can I get someone to remove a default? You can only get a default removed from your credit report if you can prove that it was an error.
How do I get a company to remove a default?
Request default removal: If you have a legal right to contest the default, contact the credit reference agency displaying the issue and argue your case with them directly. If the problem is that the default has been repaid, make sure you have evidence of this to hand.
How much does it cost to remove a default?
Default removal fees start at $1650; no payment plans are available, but you only pay once we are successful with our work.
Can a default be lifted?
You can only have a default removed if it was listed in error. A default will remain on a credit report for five years. If a default is paid, the status will be updated to ‘paid’ however it cannot be removed.