A Credit Default is a negative statement that is put on your Credit File to indicate you have broken an agreement you went into in regard to some form of Credit you have had. Credit defaults may show up for a number of reasons:

Broken Telephone Contract – People are often unaware that the contract for thir phone may total in the thousands of $$$. When a phone service is cancelled or you go to another provider the contract needs to be paid out.

Loan Contract- When you enter into a loan for a car at times the value of a car depreciates at a greater rate than what the loan gets paid off. If in this term you sell the car, or the car gets repossessed the return from the sale may not pay out the loan. In the case of a sale, the sale will simply cease to go through as the car will be encumbered. But in the case of a repossession, the remaining monies can be listed as a default if not paid.

Credit card default – A credit card can be defaulted if you fail to make a payment or the card goes over limit.It usually takes 3 months to receive a credit default.

Business Debt- If you owe monies to other companies for work or services they have provided and you fail to pay.

There are many ways to receive a credit default, but they all come in the form of a a broken credit arrangement.

If you have any questions regarding Credit Defaults or Bad Credit Home Loans please contact us on 1300 796 850 for more information.