Aaron Whybrow explains what defaults are on your credit file and how they affect lending. Some lenders will still work with you depending on the default's type and amount. The key moves: talk to creditors early, set up alternative payment plans, and find lenders willing to look at your full situation.
The Funky credit file part 4 defaults paid or Unpaid hey, it's Aaron from Diagnostics and Finance. And the Funky credit file, we've been talking about how to access it so you can see what's going on. We're talking about open accounts or inquiries that we may have on there and the dangers or the benefits of having that information there. The defaults, these are the ones that you've got or had trouble with credit in the past and they have listed it on your credit file now. It's not the end of the world. There are lenders that will lend on people that have defaults. They're lenders that you'll lend on when you don't have a default paid. It just depends on the case by case scenario about what's going on. So defaults on a credit file. There's a couple of things that we can do here. We need to understand what it is. And if it's say for example a telecommunications or utilities and it's under a certain amount, a lot of banks will just ignore it and go, well life happens if there's a number of them and they may be financial and telecommunications. You just got to be careful where you might be going. So it's really good to understand what defaults are there. It's really good to even just have a chat to your creditors beforehand. So make sure you paid your bills on time or you've rung up, pick up the phone. If you can't pay your power bill or your phone bill, pick up the phone and go, hey guys, I need some help. I need to pay it off a little bit more. Less dollars and more frequent or whatever the case may be that you get in there so that you can try to prevent them not going down the path of default. The main reason for default is you not talking to the people that you owe money to. If you can keep doing that and you keep talking to them and you keep paying them, you'll probably get over whatever issue you're going through with money so that you can move to the next step. So let's understand what defaults you may have. Let's address what we can with a standard prime lender, we call it and if we need to, we can go to a different bank to be able to understand that. Can understand your story better when you do have a default there. Alright, that's defaults.
