Why does my account still show in default even though I'm paying it?
08.07.25
Jasmin
Jasmin is Knowledge Manager at Checkmyfile and has been part of the team for over 10 years. She previously led the customer care team for five years, adding invaluable front-line experience to her credit report knowledge.
Although you may have agreed a payment plan with the lender, your contract with them has ultimately already broken down, which led to the default.
From the point that a Notice of Default has been served, lenders aren’t obliged to continue updating the credit reference agencies with your payment history – even if you’ve agreed to repay the debt.
Defaults will stay on your credit report for six years from the date of default, whether the outstanding balance is settled or not. After six years, the default will automatically drop off your credit report – but it can take up to a month for this to happen.
Right now, you can work on growing your score by repaying on time every month on all your accounts. This will build up a positive payment history, which can help improve your score. Your number will grow even more once the defaulted account drops off your credit report.