Defaults, CCJs, IVAs, DROs, bankruptcies and repossessions are serious credit markers that show lenders you’ve had difficulty repaying debt. They don’t necessarily stop you from getting credit forever, but they can have a strong impact on your score and how lenders view your application.
Understanding each type
• Default – your lender closes an account after missed payments.
• CCJ (County Court Judgment) – a court orders you to repay a debt.
• IVA (Individual Voluntary Arrangement) – a formal agreement to repay part of what you owe under set terms.
• DRO (Debt Relief Order) – a legal way to write off smaller debts if you meet certain criteria.
• Bankruptcy – a court process that writes off most debts when you can’t repay them.
• Repossession – a lender takes back an item used as security, such as a car or property, because repayments weren’t made.
Why these affect your score
Lenders rely on your credit report to decide whether to lend and on what terms. Serious credit markers suggest higher risk, so scoring systems tend to weigh them heavily. In general:
• The impact is strongest when the marker is new
• It becomes less severe over time, especially with steady, on-time payments afterward
• Multiple or recent markers have a bigger impact
• Settled debts are viewed more positively than unpaid ones
These markers usually stay on your credit report for up to six years from the date they were recorded. While they’re visible, some lenders may decline applications or offer smaller credit limits and higher interest rates.
What you can do
If the information is correct but there’s important context - for example, redundancy, illness, or another valid reason for missed payments - you can add a Notice of Correction to your credit file.
This is a short statement that appears alongside your data so lenders can read it when assessing your application.
Even with a serious marker, consistent good behaviour matters. Paying on time, keeping balances low, and staying up to date with your accounts will help your score gradually recover.