Default Advice

[djfaulkner]

I've been checking my credit report and noticed a default on my account for £23

It was registered on my account in March 2008 by Carphonewarehouse and they have never contacted me about it, otherwise I would of paid it.

If I pay it, will it disappear? or will it stay on my record for another two years?

I've checked my record with two companies, one says fair, the other poor

[gsfrontera]

It will stay on there but will then appear as a satisfied default. I wouldnt worry too much, a 23 quid default from a mobile is hardly going to affect your credit. I work for a finance lender and we would ignore such a default.

[craigjm]

As above, I wouldn't worry about it. The poor rating is probably due to something like living in rented accommodation / not being on the electoral roll or such things rather than a 23 default

[djfaulkner]

Hmmm thanks chaps.

I will have another look as the only that is red is the default.
Although I had to update my details as my address was wrong so it might of been that.

Didn't know renting affected credit records though.

[Eric Mc]

Any financial commitment that you slip up on can affect your rating.

Why SHOULDN'T a rental agreement NOT form part of your record?

[djfaulkner]

Eric Mc said:

Any financial commitment that you slip up on can affect your rating.

Why SHOULDN'T a rental agreement NOT form part of your record?

Because all my other credit scored financial agreements show up as accounts on my record, my rent doesn't.

I understand that if I default on my rent then that woud have an effect.

[bennyboydurham]

If you never received a default notice then you've reasonable grounds to try to get it removed. Also you will be credit scored to obtain a rental property but the actual rent payments are not recorded. Only if you get into rent arrears and a CCJ is recorded against you will any rental monies appear on your credit file.

[craigjm]

djfaulkner said:

Hmmm thanks chaps.

I will have another look as the only that is red is the default.
Although I had to update my details as my address was wrong so it might of been that.

Didn't know renting affected credit records though.

Latest address with entry on the electoral roll for the address will increase score and renting decreases it as you are a safer bet for credit if you are an owner occupier or paying a mortgage in the eyes of lenders. The problem with renting is there is nothing that ties you to that property so if you left they would have to try and find you if you stopped paying

[gsfrontera]

Eric Mc said:

Any financial commitment that you slip up on can affect your rating.

Why SHOULDN'T a rental agreement NOT form part of your record?

I view many credit reports each day. I have never seen a rental contract detailed on any of them. You could miss your rent for months in a row and we would have no idea from searching your credit report. So as for slipping up on your rent affecting your credit rating. Wrong, Sorry!

[craigjm]

gsfrontera said:

I view many credit reports each day. I have never seen a rental contract detailed on any of them. You could miss your rent for months in a row and we would have no idea from searching your credit report. So as for slipping up on your rent affecting your credit rating. Wrong, Sorry!

Yeah when i mentioned renting I meant in the way that not owning a home impacts on score not the agreement itself. I have never seen rental agreements on credit ratings

[anonymous-user]

gsfrontera said:

Eric Mc said:

Any financial commitment that you slip up on can affect your rating.

Why SHOULDN'T a rental agreement NOT form part of your record?

I view many credit reports each day. I have never seen a rental contract detailed on any of them. You could miss your rent for months in a row and we would have no idea from searching your credit report. So as for slipping up on your rent affecting your credit rating. Wrong, Sorry!

It won't initially, but the CCJ that your landlord eventually rewards you with certainly will.

[bennyboydurham]

Inkyfingers said:

It won't initially, but the CCJ that your landlord eventually rewards you with certainly will.

Agreed, however in practice a CCJ is unlikely. My old man owns a letting agency and tells it's nearly impossible to recover monies from tenants who've done a bunk. Very few landlords will waste time and money on CCJs that are unenforceable.