LearnMoney.co.uk Offers Free Guide to Getting Default Notices Removed From Your Credit File

The power of the credit reporting agencies such as Experian is frightening and most UK citizens don’t realise just how much influence over their personal and financial lives these agencies hold. For example, searching your credit file is often done by potential employers so as to garner information on the general suitability and financial wellbeing of job applicants.

Default notices are marks on a credit file to show that a customer has defaulted on an original loan agreement such as a mortgage, credit card bill or hire purchase agreement. Defaults are usually issued if 3 consecutive payments are missed. A default notice doesn’t always lead to a County Court Judgment (CCJ). The customer has the chance to negotiate with the financial institution before this happens and either make good on their missed payments or work out some sort of future payment plan. However, a ‘Default’ notice already issued will still stay on a credit file for a minimum of 6 years even if it is marked as ‘satisfied’.

Many people wrongly believe that CCJs are the worst entry on a credit file apart of course from bankruptcy. But Defaults are in effect just as bad as a CCJ and most lenders will shy away from doing business with those that carry them on their credit file. In fact, a default is so bad that many will find it impossible to even obtain a chequebook from a High Street bank let alone a mortgage or credit card at a competitive interest rate.

A default in many ways will cast the holder out of the reach of most financial products and drastically reduce their financial options for at least 6 years. Taking out a mortgage will still be possible but the interest rate offered will be very high.

The LearnMoney.co.uk site has just published an explosive article that informs people with default entries on their credit file a simple and very effective way to get them legally removed. This strategy works because there is a very defined procedure that financial institutions have to follow when issuing defaults. And because many financial institutions have issued defaults like confetti in the past they have done so without following these procedures. The strategy therefore concentrates on whether the correct actions and paperwork were followed and if not that in itself is cause for the default(s) to be removed.

The methods in the article are not 100% guaranteed and they tend to work far better on default notices issued pre 2005. But there is little work involved and costs are virtually nothing apart from paying for recorded delivery letters and small denomination postal orders. The strategy does not involve paying or involving any third party company in the ‘credit repair’ business.

A final point to note is that having a clean or relatively clean credit file can save thousands of pounds over several years because of access to many different financial options including credit deals at very favourable interest rates. For example, ‘best buy’ mortgages, cheap loans alongside 0% or very low levels of interest on credit cards. None of these deals will be available to anyone with one of more ‘default’ notices against their name.

The LearnMoney website also produces excellent free guides on personal finance and stockmarket related products, including other tactics for improving your credit file and rating.