A default stays on your credit file in the UK for six years. This means that potential creditors will see the default on your credit file for six years, which could potentially have a negative impact on your ability to obtain credit in the future, the severity of the impact will decrease over time.
The good news is that you can start to rebuild your credit rating as soon as the default is registered on your file. You can do this by getting a copy of your credit report and checking that you're paying all of your bills or debt in full and on time, this is a great start to help improve your credit rating.
If you are having trouble paying your debts, it is important to speak with your creditors as soon as possible to try to reach a payment arrangement. Creditors may be willing to work with you if you can show that you are making a good-faith effort to repay your debts. Additionally, there are various debt relief options available that may be able to help you get back on track financially.
If you have a default on your credit file, it can be very difficult to get a loan or a mortgage from the normal avenues, such as high street banks and building societies. You may find that you are unable to get approved for any credit at all. You can improve your chances of getting approved for credit if you speak to a specialist credit or mortgage advisor, it is extremely important to be truthful and honest when answering questions and providing documents.