Credit file question

[Tinks]

Does a default automatically get removed from your credit file on the date it's due for removal?

[Frantelle]

As far as I know yes, they are automatically removed.

[TaRhLi.]

No, the default is noted as paid on the file but the details will still be on your Credit Report for up to 7 yrs from the date it was finalised (depending on the type of default - it could be 3yrs, 5yrs or 7yrs).

If you are unsure you can order a copy of your Credit Report to be sent to you so you can see what is listed. Even if a default has been paid in full it can still hinder your chances of getting credit (depending on what you are wanting to borrow for).

For a home loan if you need Mortgage Insurance (ie: borrowing more than 80% of the purchase price) then you will find it extremely difficult to get finance as since the GFC all of the lending guidelines have been tightened up.

Most lenders know Telco's (ie: mobile phones) will lodge defaults pretty quickly but even a $2 default could affect yoru ability to borrow.

If it is due for removal on a certain date, it should drop off as your file only last for a specific period of time, but it is not a guaranteed it will happen automatically on that date. I would get a copy of your report for peace of mind as it's better to know it is either still there or gone before you find out from another source it is still there IYKWIM.

**This is coming from my background as a Mortgage Broker and Credit Officer**

[Beautiful Disaster]

Mine did

[Tinks]

So, Tarli, are you saying that the default stays on your credit file for 5-7 years after the removal date? Scary!

[Beautiful Disaster]

Is it a paid default tinks? Or just unpaid but been there 7 years??

My debt agreement left my file 7 years on the dot to the date I took it out EVEN though I hadn't paid it out yet.

[Tinks]

It was a very small paid default, the listing on the credit report said it would be removed on x date. I don't know whether it happens automatically or whether I have to chase it up.

[LimeSlice]

It will be on your file for 7 years. Then it is removed. It doesn't stay on there for 7 years AFTER the first 7 years are up.

If you are concerned it hasn't been removed and the date has passed, contact Veda and ask them why it is still there and that it be removed.

[Tinks]

It was only on my file for 5 years. Maybe I'm lucky

[LimeSlice]

Then whatever it is is only meant to be there for 5 years. Like Tarhli said above, some are 3, some are 5 and some are 7 depending on the particulars.

[Tinks]

It's all too much for my small brain.

[TaRhLi.]

It's 3, 5 or 7 yrs from the dated listed, but I've seen instances of the date listed being different to the date the default occurred.