If you miss payments to a debt or you don't pay the right amount, your creditor may eventually default your account. This can have serious consequences, and the default can affect your credit rating.
This means they'll cancel the agreement you had with them. A debt can only default once, but after this happens your creditor can take further action to collect the debt.
After the marker for the missed payment or default notice is added to your credit file, your credit score will be updated by the credit reference agencies.
A default on your account shows that you've not paid your previous debts. If you apply for credit in the future, creditors who check your credit file will see this.
They’ll usually assume that your defaults means there’s a higher risk of you not paying them back. As a result it might be harder for you to take out loans, credit cards or open certain bank accounts. You might also find it difficult to get a mortgage.