30 days late: a soft warning
Most lenders don't report a payment as late until it's 30 days past due. The marker shows on your file as a '1' status against that month. Effect: a Good score can drop 40-80 points, and prime lenders will treat you as near-prime for around 12 months.
60-90 days late: this is when it hurts
Status '2' and '3' markers stack month by month. Any new credit application in this window is likely to be declined outright by prime lenders. Some near-prime lenders will still consider you but at 6-10 percentage points higher APR than your usual band.
Default (typically 3-6 months late)
The lender terminates the agreement and registers a default. This is the single most damaging event outside of bankruptcy — expect a 100-200 point drop and to be routed to specialist bad-credit lenders only for at least 12 months. Defaults stay visible for six years from the default date, regardless of when you settle.
Voluntary Termination is not a default
If you exercise your legal right to VT after paying 50% of the total amount payable, the file entry is 'Settled' — not 'Defaulted'. Some lenders view repeated VTs cautiously, but it's a materially different marker to a default.
The fastest legitimate route back
1. Bring the account current if you can — a settled arrears is much better than an unsettled one.
2. Set up direct debits on every credit account so a mistake can't happen twice.
3. Keep every account paid on time for the following 12 months — that's the minimum window for prime lenders to reconsider.
4. Six months in, use a soft-search quote to see where you stand. You'll rebuild faster than you think.
