Understanding default notices; what does a default notice mean for your credit file?
If you get behind with your debt or loan repayments the lender may issue a default notice. What could that mean for your credit file?
If you’ve got behind with payments on a mortgage, loan or credit card, you may receive a formal letter through the post, called a ‘default notice’. Many people don’t realise how serious this is or what it could mean for their credit file. If you receive a default notice, make sure you act quickly as it may mean you can minimise the damage to your credit rating.
How to get hold of your credit reference file – and why you should.
Your credit record file tracks where you've been applying for credit and how you've repaid it. But most people have never seen theirs.
Checked April 16th 2011.
If someone said something about you that could affect your chances of getting a loan or credit, you’d want to know about it – wouldn’t you? Yet millions of people have never seen their credit reference file – a file that companies such as banks, credit card providers, loan providers and mobile phone companies check before they agree to give you credit. You have the right to get a copy of your credit reference file for £2 and – since last summer – you’ve been able to do it online.
What do lenders take into account? How banks and credit card companies work out your credit risk.
The current climate means that credit card companies and banks look at credit history information very carefully when working out whether or not to give you credit.
Checked April 16th 2011.
It’s no secret that in last couple of years lenders (whether it’s banks, credit card companies or mortgage providers) have got much tougher about who they’ll lend money to and who they’ll reject. But although – in general terms - you’re more likely to be turned down now than before the credit crunch, there’s no one-size-fits-all policy when it comes to lending. Different lenders use information from your credit file and your application form in different ways.
