A default happens when your account with a creditor (people or company you owe money to) is closed because you’ve repeatedly missed payments and an outstanding balance. For example, this could be on a credit card, mobile phone provider or utility company, rent or a mortgage. You can get a default on your credit history regardless of how much money you actually owe. For example, it’s possible to get a default for a very small amount.
The way you end up with a default is the creditor (the person or company you own money to) will have made an attempt to reclaim the money. And a default happens after a period of missing payments for three to six months, sometimes longer, but this very much depends upon the creditor’s own terms.
You’ll usually have been sent a default notice before your account being closed – and this is essentially a request for you to repay your balance before further action is taken.