How to Rebuild Your Credit Score After a Default or Missed Payment
If you’ve had a default or missed payment, it can feel like your financial future has taken a hit — especially if you’re thinking about getting a mortgage. But the truth is, your credit score can recover with time, consistency, and the right steps.
At Mortgage Bridge, we help people every day who’ve had credit challenges rebuild their profile and successfully secure a mortgage. Here’s how you can do the same.
What Happens to Your Credit Score After a Default?
When a default is recorded, it tells lenders that you failed to make agreed payments for an extended period — typically after several missed payments. This mark stays on your credit file for six years from the default date, even if the debt has been paid off.
The impact is strongest in the first year, but it softens over time — especially as you demonstrate better money management. Lenders look at patterns, not just one event.
If you’ve already cleared the debt, that’s a positive signal. Make sure the account is shown as “settled” or “satisfied” on your credit report — it shows you’ve taken responsibility.
Can You Get Credit Again After a Default or Missed Payment?
Yes, you can — but it’s about building back trust.
After a default, mainstream lenders may be cautious for a while, but smaller or specialist lenders often take a more flexible view, especially if the issue was isolated or caused by temporary hardship.
We work with many people in this position and often find that within 12–24 months of consistent financial behaviour, you can start to see real improvement — and even become mortgage-ready.
Step-by-Step: How to Rebuild Your Credit Score After a Default
1. Check All Three Credit Reports
Start by checking your credit reports with Experian, Equifax, and TransUnion. Errors aren’t uncommon — so if something’s outdated or wrong, ask for it to be corrected.
Make sure:
- Paid debts show as settled or satisfied.
- Your address and electoral roll information are current.
- Old financial links (like ex-partners) are removed if no longer relevant.
2. Catch Up on Any Outstanding Payments
If you still have overdue balances, prioritise bringing them up to date. Even partial payments or payment arrangements are better than leaving them unresolved.
Lenders prefer to see you addressing debts rather than ignoring them.
3. Register on the Electoral Roll
It’s a simple but powerful step. Being registered at your current address improves your credit profile because it helps lenders verify your identity and stability.
4. Keep Credit Usage Low
If you use credit cards, aim to use less than 30% of your available limit. For example, if your limit is £1,000, try to stay under £300. This shows you can manage credit responsibly.
5. Use a Credit Builder Card or Account
A credit builder card, used carefully, can accelerate recovery. Spend a small amount each month and pay it off in full to prove consistent, on-time payments.
Avoid applying for several cards at once — one or two well-managed accounts are enough to demonstrate reliability.
6. Avoid New Missed Payments
This might sound obvious, but it’s vital. Set up direct debits for all regular bills — utilities, mobile phone, and council tax — so nothing slips through the cracks. Each on-time payment strengthens your track record.
7. Keep Old Accounts Open
If you’ve got older credit accounts in good standing, keep them open. A long credit history with positive behaviour adds stability to your profile.
8. Space Out New Applications
Every credit application leaves a footprint. Too many in a short time can look risky, even if they’re accepted. Apply strategically and only when necessary.
How Long Does It Take to Rebuild a Credit Score After a Default?
There’s no instant fix — but steady progress happens faster than most people think.
- 3–6 months: You’ll start to see small score improvements from consistent payments.
- 12 months: Lenders begin to view your new pattern more positively.
- 2 years: Many people can access specialist mortgage products again.
- 6 years: The default will drop off your file completely.
We’ve seen clients move from default to mortgage-ready within 18–24 months by following these steps and working strategically with us.
Can I Get a Mortgage If I’ve Had Defaults or Missed Payments?
Yes — and it’s more common than you might think.
Some high-street banks may decline your application, but there are specialist lenders who focus on adverse credit mortgages. They assess the whole story:
- When the default happened
- Why it occurred
- Whether it’s been settled
- What your financial behaviour looks like now
Even if the default is recent, options may still exist — particularly if you have a solid deposit or have shown improvement.
We explore this in more detail in our guide on Getting a Mortgage After Bankruptcy and Mortgages with a Debt Management Plan.
How Mortgage Bridge Can Help You Rebuild and Reapply
At Mortgage Bridge, we don’t judge anyone for past credit issues — we look forward.
We’ll:
- Review your full credit profile and explain what lenders will see.
- Recommend practical ways to improve your score faster.
- Match you with lenders who specialise in applicants rebuilding their credit.
- Support you from credit recovery right through to mortgage approval.
You don’t have to wait six years for a clean slate. With the right preparation and advice, you can often qualify sooner than you expect.
Let’s explore your options together.
Common Questions About Rebuilding Credit
How many points can my credit score improve in a year?
It varies, but with consistent on-time payments, it’s not unusual to see a rise of 100–200 points in the first 12 months.
Should I pay off old debts or save for a deposit first?
If you’re planning to apply for a mortgage soon, paying off or settling defaults first is best — lenders value financial stability more than savings speed.
Do settled defaults still affect my score?
Yes, but much less than unpaid ones. Once marked “satisfied,” their negative impact reduces over time.
Can I remove a default early?
Only if it was registered in error. Otherwise, it will stay for six years — but its effect fades each year.
Does checking my own credit report hurt my score?
No. In fact, it’s encouraged — soft checks don’t affect your score and help you stay informed.
Final Thoughts
A default or missed payment doesn’t define your financial future. With patience, consistency, and the right support, you can rebuild your credit score — and position yourself for mortgage success.
At Mortgage Bridge, we specialise in helping people rebuild, recover, and reapply with confidence. If you’d like to see what could work for you, we’re here to help.