What is a payment default? Are overdue debts the same?
Payment defaults or overdue debts are entries on your credit history which affect your chances of obtaining credit. The following is basic info to help answer What is a payment default
Payment defaults are also called overdue debts. These entries are different to late payment data on your report.
Removal of payment defaults is possible in certain cases but a thorough understanding of relevant guide lines and law make chances of removal much better. Always seek the advice of a solicitor who specializes in payment default matters.
A credit provider must carry out certain steps before listing a payment default. This can include overdue notices to your last known address which states that the debt may be listed with a credit bureau such as D&B or Equifax.
A payment default is more than $150 and is a minimum of 60 days overdue. This can relate to bank loans, credit cards, utility bills or leases in a consumers name.
Avoid being late with any payments and this will prevent payment defaults on your credit report which can blow your chances of obtaining the credit or finance you want. In most cases credit providers will list payment defaults regardless of your story or excuse for being late with a payment over 60 days.
Commercial defaults are a different category on your credit file and relate to business debts. These must be at least $100 but don’t necessarily have to be 60 days overdue as trade accounts have different terms to consumer finance.
Payment defaults stay on your credit report for five to seven years regardless of paid or not.
You can have your credit report assessed for any payment defaults if you think an entry has been placed.