How to Rebuild Your Credit Score After a Default or Missed Payment – Step-by-Step Guide

A missed payment or default on your credit file can feel like a major setback — especially if you’re planning to apply for a mortgage. Many people assume one mistake means years of waiting or automatic rejection.

The reality is far more positive. You can rebuild your credit score after a default or missed payment, and with the right steps, many borrowers go on to secure a mortgage sooner than they expect.

At Mortgage Bridge, we help people every day who have past credit issues but are now moving forward. This guide explains exactly how to rebuild your credit step by step, how long it takes, and what mortgage lenders actually care about.

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What Is the Difference Between a Missed Payment and a Default?

Before rebuilding your credit, it’s important to understand what lenders see.

Missed Payment

A missed payment is usually recorded when you fall behind by one month. It’s less severe than a default but still visible to lenders.

Default

A default is registered when an account is seriously overdue, often after several missed payments. It stays on your credit file for six years from the default date.

Both affect your credit score — but neither means a mortgage is impossible.

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How Long Do Missed Payments and Defaults Affect Your Credit?

• Missed payments remain visible for up to six years
• Defaults remain visible for six years from the default date

However, their impact reduces over time, especially if your recent credit behaviour is positive. Lenders care far more about what you’re doing now than what happened years ago.

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Step 1: Check Your Credit Reports Carefully

The first step to rebuild your credit score after a default is understanding exactly what’s recorded.

Check your credit reports with all major credit agencies and look for:

• Incorrect balances
• Duplicate defaults
• Accounts not marked as satisfied
• Wrong default dates

Errors are more common than people realise. Fixing them can lead to an immediate improvement.

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Step 2: Make Sure All Defaults Are Settled or Marked Correctly

An unpaid default looks worse than a settled one.

If possible:

• Pay off outstanding default balances
• Agree settlements where appropriate
• Ensure the account shows as “satisfied”

Settling a default does not remove it, but it improves how lenders view it.

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Step 3: Stop Any Further Missed Payments Immediately

The fastest way to damage rebuilding progress is another missed payment.

Make sure:

• All direct debits are up to date
• Minimum payments are always met
• Priority bills are paid on time

Even one new missed payment can undo months of progress.

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Step 4: Register on the Electoral Roll

This step is simple but powerful.

Being registered to vote:

• Improves identity verification
• Increases lender confidence
• Positively affects your credit score

It’s one of the easiest wins when rebuilding credit.

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Step 5: Use Credit Carefully to Rebuild Trust

Avoid avoiding credit altogether. Instead, use it strategically.

Credit Builder Cards

These can help if used correctly:

• Keep balances low
• Repay in full each month
• Never miss a payment

The goal is to show consistent, responsible behaviour — not to borrow more.

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Step 6: Keep Credit Utilisation Low

Credit utilisation refers to how much of your available credit you’re using.

As a general rule:

• Try to use less than 30% of your available credit
• Lower is even better

High utilisation can harm your score even if payments are on time.

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Step 7: Avoid New Credit Applications

Each credit application leaves a footprint.

Too many applications:

• Lower your score temporarily
• Make lenders nervous
• Suggest financial pressure

When rebuilding your credit score after a default, less is more.

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Step 8: Be Patient and Consistent

Credit repair is not instant — but it is predictable.

Over time:

• Older defaults matter less
• Recent clean history matters more
• Scores gradually improve

Consistency is what lenders want to see.

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Can You Get a Mortgage While Rebuilding Your Credit?

Yes, in many cases.

Some lenders will consider applicants with:

• Older defaults
• Isolated missed payments
• Evidence of recovery

Key factors include:

• How long ago the issue occurred
• Whether credit has been clean since
• Deposit size
• Overall affordability

We cover this in more detail in our guides on mortgages with bad credit and mortgages after defaults.

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Common Credit Rebuilding Mistakes to Avoid

• Closing all credit accounts
• Missing “small” payments
• Applying for multiple cards or loans
• Ignoring errors on credit reports
• Assuming time alone fixes everything

Rebuilding credit is about active improvement, not waiting.

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How Mortgage Bridge Helps Clients with Credit Repair

We don’t just look at your credit score — we look at the full picture.

We help by:

• Reviewing credit files line by line
• Explaining how lenders will view issues
• Identifying when mortgage options become viable
• Matching you with lenders that fit your credit profile

We’re here to help if you want to understand where you really stand.

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Key Takeaways

• Defaults and missed payments do not mean “no mortgage forever”
• Recent behaviour matters more than old mistakes
• Clean payment history is the biggest factor
• Strategic credit use helps rebuild trust
• Lender choice is crucial

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Summary

Rebuilding your credit score after a default or missed payment is absolutely achievable with the right approach. While negative markers remain on your credit file for several years, their impact reduces over time — especially when replaced with consistent, positive behaviour.

By checking your credit reports, settling defaults where possible, avoiding further missed payments, and using credit carefully, you can steadily improve your credit profile. For those planning a mortgage, understanding how lenders view recovered credit issues can make a significant difference to both approval chances and available rates.

This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor