Edited by Michelle TipswordDoes Your Credit Score Go up When a Default Is Removed?
Edited by Michelle Tipsword
Quick Answer
- Your credit score may go up when a default is removed, but it depends on what’s in the rest of your credit file.
- If a recent default gets removed due to student loan rehabilitation or a credit report dispute, you could see a larger score increase.
Your credit score may go up when a default is removed from your credit report, but how much it increases depends on how fresh the mark was and what else is in your file.
Missed credit card and loan payments have a big effect on your credit. When you fall at least 90 days behind on payments, your account typically goes into default, and your credit scores can drop significantly.
But, like other negative records, defaults don't stay on your credit forever. Here's how your credit score may be affected when the default expires.
Does Your Credit Score Go up When a Default Is Removed?
When a default comes off your credit report, your credit score is likely to go up. A default, like other negative items on your credit report, stays there for seven years. When that time has elapsed, the default will automatically be removed from your credit report, which can have a positive impact on your scores.
When a default first shows up on your credit file, you'll likely see a significant credit score drop. That's because the more recent negative information is, the bigger the effect on your scores. The events leading up to the default, including missed payments, will also hurt your credit score.
How Much Will Your Credit Score Increase After a Default Is Removed?
When a default eventually no longer appears on your credit report, you'll likely see an increase to your score, but it may not be a major change. The following factors can affect how much your score improves:
- Age of the default: The older the default, the less of a positive boost to your score you'll see when it's removed, since fresh negative marks are more damaging. But if the default was recent—within the past year, for example—you could see a bigger boost to your score when it's removed. This isn't typical; read on for more about the few circumstances that could lead to an early removal of a default.
- Other derogatory information: Your score also won't increase substantially if your credit report includes additional delinquencies, defaults, foreclosures, bankruptcy or accounts in collections—especially if they're new. These derogatory marks weigh down credit scores.
- Overall payment history: Payment history accounts for the largest share of your credit score. If you've made all payments on time across your other accounts while the default appeared on your credit report, by the time it comes off, your credit score may have already improved some. That could mean you may not see a huge boost to your score when the "default" mark comes off your credit report, since your score is already recovering.
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How Long Does It Take Your Credit Score to Increase After a Default Is Removed?
It can take a few months to more than a year for your credit score to increase after the removal of a default. The precise amount of time will depend on the makeup of the rest of your credit report.
When a default expires, it will no longer appear in your credit file. Credit scores, which are determined based on the data in your credit report, get updated continuously, so they may reflect the removal of the default quite quickly. But if there are additional negative items on your credit report, the score itself may not increase substantially, and you may need more positive information to balance out the missed payments or other issues present.
Alternatively, if you have mostly positive recent payment history and keep up good credit habits, you'll likely have the ability to improve your credit score faster.
How Long Does a Default Stay on Your Credit Report?
A default stays on your credit report for seven years from the original delinquency date that led to default, or the first missed payment on the account that was reported to the credit bureaus. That date can vary based on when your lender reports payment information to the credit bureaus.
Let's say you miss three loan payments, and the first was due on September 1, 2026. Payments are reported as late after they haven't been made for 30 days. Your payment will be registered as missed—and can be reported to the credit bureaus as such—on October 2, 2026, 31 days after your payment was due.
If you fail to make that payment after 90 days and your account goes into default, that default will stay on your credit reports until at least October 2, 2033—seven years after your first missed payment was reported.
Can You Get a Default Removed Early?
You may be able to get a default removed from your credit report in the following situations:
- Federal student loan rehabilitation: The student loan rehabilitation process is one way to address a defaulted federal student loan. It takes 10 months and results in the removal of the default notation from your credit report. The missed payments that led to the default will remain on your credit report for seven years, however, which will continue to bring down your score—though likely not as much as if the default also remained.
- Credit report dispute: A default may also come off your credit report in fewer than seven years if it was added inaccurately to your credit report and you successfully dispute it with credit bureaus. You have the right to dispute, for free, credit report information you believe is false or fraudulent.
How Can Disputing a Default Impact Your Credit Score?
The act of disputing information on your credit report does not hurt or help your credit scores. The dispute process is meant to ensure correct credit report information, which means it will not remove a default, missed debt payment, charge-off, collection account or any other data that's recorded accurately.
Removing a default isn't guaranteed to make a huge improvement to your credit scores. When you default, you've likely already missed at least three monthly payments toward a debt, and those derogatory marks will stay on your credit report for seven years. But their impact on your scores will decrease over time.
How to Avoid Defaulting on Loans in the Future
Default happens after 90 days of nonpayment, which means there's time to avoid it if you're proactive in exploring your options. To avoid the fees, damage to your credit or loss of property that can happen as a result of default, consider these preventive measures:
- Stay in contact with your lender. Communicate with your creditor before you fall behind. Your lender may be more flexible if you reach out while your account is still in good standing, and you could potentially work out a modified repayment plan that fits your budget and prevents you from defaulting.
- Deal with your first late payment before 30 days elapse. Late payments won't be reported to the credit bureaus until 30 days after the due date has passed. Pay a bill as soon as possible after you realize you've missed the due date to avoid credit damage from a late payment notation in your credit report (but likely not late fees). Talk to your lender about loan modification options, deferment or other solutions if affordability beyond a single month will continue to be a concern.
- Consolidate debt. If your credit is solid, or if it improved since you took on your debt, you may be able to consolidate your debt and avoid falling behind by taking out a new loan with more affordable payments. You can use Experian's loan comparison platform to find a debt consolidation loan that works for you.
The Bottom Line
The removal of a default can improve your credit scores, but if you want a strong credit file over the long haul, you'll need to add positive information too. Steps you can take to build good credit include paying bills on time every month, keeping your debt balances low and addressing any past-due accounts or charge-offs. Reviewing your credit report and scores, which you can do for free with Experian, can also help you find other opportunities for improvement.
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About the author
Brianna McGurran
Brianna McGurran is a freelance journalist and writing teacher based in Brooklyn, New York. Most recently, she was a staff writer and spokesperson at the personal finance website NerdWallet, where she wrote "Ask Brianna," a financial advice column syndicated by the Associated Press.
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