Paying a debt default listed on your credit report will only result in your report being updated to show the debt is now ‘paid’—the default listing won’t be removed. A default listing on your credit report will only be removed if it’s been incorrectly added, or if the retention period has ended. We Fix Credit can assist in many cases to have the default listing removed paid or unpaid prior to the 5 year retention period.

In some cases the debt may be statue barred, inaccurate and may not be a valid default listing particularly if it was listed by the credit provider if they were made aware of financial hardship prior to the default listing. Credit providers include banks and finance companies or other businesses which provide credit or goods and services at least 7 days before you have to pay for them.  Electricity, gas, water, phone and internet companies can all list information on your credit report.

You have the right to obtain a correction on your credit report for any inaccurate, out-of-date, incomplete, irrelevant or misleading information. This can often be difficult to navigate with the credit provider, hence why we are able there to assist you with this process efficiently.

If you have paid a debt that has been listed on your report as a default (unpaid or paid overdue), the creditor must advise the credit reporting body to have the listing noted as “paid” or “settled”. However, default listings are not removed just because you pay the debt. In some instances the credit provider may agree to remove the default listing altogether if you pay or settle the debt.

Having “paid” noted on your credit report does not “fix” your report. A new credit provider might still refuse to lend to you because the default listing remains. Depending on the type of debt that the default relates to, a new credit provider may still agree to give you credit if the past debt is paid however most major banks and lenders will refuse your application based on the default listing itself.

Most lenders that accept a paid default will charge a premium interest rate and additional fees and charges as they would view your application as a ‘higher risk’.

If you notice a default listing on your credit report, speak to one of our consultants about your options as simply paying the default listing may not be the best way to proceed with your credit repair and your situation may require further investigation as to the validity of the debt. We Fix Credit have the expertise to provide you with accurate information with no obligation, so that you can make an informed decision about your credit repair needs.