Default

A default is when you do not meet the repayment obligations in your credit agreement for a personal loan or another type of borrowing. A lender will not usually issue a default notice if you miss one payment but will do so if you miss several consecutive payments. A default is a serious credit infringement and can have severe consequences for your credit score. A default notice may also be the first step in further action the lender plans to take, which may lead to court action and bankruptcy.