If you’ve ever missed a payment or had a default, you might wonder how long bad credit stays on your file. Knowing this helps you plan what to do next, especially if you’re looking for car finance for bad credit. The good news is that bad credit doesn’t last forever — most marks fade with time.
What Counts as Bad Credit?
Bad credit means there are signs on your credit file that show you have struggled to keep up with payments in the past. These can include:
- Missed or late payments
- Defaults on loans or credit cards
- County Court Judgments (CCJs)
- Arrangements like IVAs or bankruptcy
Each of these can stay on your file for several years. But their impact fades if you start managing your money well and make payments on time.
The Six-Year Rule Explained
In the UK, most bad credit stays on your record for about six years. MoneyHelper says missed payments and defaults normally stay for six years from the date they happened. That includes:
- Missed or late payments – stay for six years.
- Defaults – stay for six years, even if you’ve paid them off (Experian).
- County Court Judgments (CCJs) – remain for six years unless they are cancelled (Experian).
- IVAs or bankruptcies – often stay for six years, sometimes longer (TransUnion).
Six years might sound like a long time, but lenders such as Go Car Credit mainly look at your recent behaviour. If you’ve been making regular payments, that could show improvement and responsibility.
Why Lenders Look at Your Credit History
When you apply for car finance, lenders check your credit report to see how likely you are to repay. This is part of our car finance approval process. Lenders usually check:
- What type of problems you’ve had, such as missed payments or defaults
- When those problems happened
- If you’ve made payments on time since then
- How much credit you already have
If your recent history looks steady, you might still get car finance with bad credit. At Go Car Credit, we look at your current situation and focus on helping you move forward.
Does Paying Off a Default Remove It?
No. Paying off a default doesn’t remove it from your file. It stays there for six years from the default date, whether it’s paid or not. But paying it off is still a good sign — it shows lenders you’ve taken responsibility.
MoneyHelper explains that even though defaults stay on your file, their effect gets smaller the longer you manage your credit well.
How to Check What’s on Your Credit File
You can look at your credit report for free. The main credit reference agencies are Experian and TransUnion. Checking your report helps you find mistakes, see what’s improved, and make sure old records have been removed. After six years, bad marks should disappear automatically.
What Happens After Six Years?
After six years, most negative marks are deleted from your credit file. Lenders won’t see them anymore. If you’ve kept up with payments since, your score will likely rise, and you may find it easier to get credit or finance.
If you want to work on your score, our guide on rebuilding your credit gives simple steps like paying bills on time and keeping borrowing low.
How Bad Credit Affects Car Finance
Having bad credit doesn’t mean you can’t get car finance. It just means lenders will check things more carefully. We know people can fall behind for many reasons — job loss, illness, or life changes.
If you’ve already been turned down, our Refused Car Finance page explains what to do next and how to give yourself a better chance next time.
Improving Your Credit Over Time
You could start improving your credit by doing a few simple things:
- Pay your bills and loans on time
- Stay within your credit limits
- Don’t apply for too many loans at once
- Keep old, well-managed accounts open
- Make sure your personal details are up to date
Our credit explained guide shows how lenders use this information and what matters most when you apply.
When Will My Credit Improve?
Your credit won’t improve overnight, but it could start getting better within a few months if you stick to good habits. Each month of on-time payments helps. After a couple of years of steady payments, your score may improve a lot.
Some people who rebuild their credit may later qualify for fair credit car finance. The more positive history you build, the more options you could have.
Key Points to Remember
- Most bad credit stays on your file for six years.
- The effect gets smaller over time if you manage money well.
- Paying off debts helps, even if marks remain for a while.
- Check your file with Experian or TransUnion to see your progress.
- Go Car Credit could help people with poor credit find affordable car finance.
Your Past Doesn’t Define You
If you’re ready to move forward, apply for car finance online today. Even with bad credit, you could still get the car you need with a lender that looks at your whole story, not just your credit score.
