How do I update a default and will it affect job chances?

Dear James,

I have a query. I would like to know if I pay off or settle a default on my credit report would it show satisfied? Would it come off my credit file as soon as I pay if off or is it going to be on my files for a specific period? Would I be able to apply for jobs in financial institutions after settling my defaults?

Neeru, Cardiff

Dear Neeru,

Defaults stay on your credit report for six years from the default date. If they are repaid during this time they are marked as ‘satisfied.’ As far as credit checks are concerned, defaults are seen as bad news by most lenders – although any detrimental effect is likely to reduce over time and, of course, once you repay them. As far as employment checks are concerned, these are usually confined to public data such as court judgments and bankruptcies. This is because only organisations that share their own credit history data can routinely access others’ credit history data. However, were you to apply for a job with a lender that shares credit data, such as a bank, they might get your permission to run a full check, enabling them to see your defaults. What would happen next really depends on their internal policies, so it would probably be wise to enquire about these up front. As with general credit checks, the defaults are less like to affect you adversely if you have repaid them. (April 2012)

James
                        Sign

Take control of your finances with CreditExpert

Your Experian Credit Report

Guidance on what’s affecting your score and how you can improve it

Web monitoring and credit report alerts to help you spot fraud

Dedicated help if you’re a victim of fraud

Support from our UK-based call centre team

Explore our Help Centre

Our credit report centre is full of information on what 's in your credit report and how to improve your credit rating.

Credit Report Help Centre

Find out how to protect yourself from identity fraud and what to do if you're a victim.

Identity fraud explained

Statutory Credit Report

Provides you with a one-off view of your current and past credit history.

Statutory Credit Report