 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: The Different Types of Defaults on Your Credit Report\n-----------------------------------------------------\nDefault typically happens when you miss multiple payments on a debt. Usually, after several attempts to contact you and work out a solution, your creditor will determine that you're defaulting on payment. Your account will then be transferred to a collections department or sold to a collections agency.\nThe timeframe and consequences can vary, but here's an overview of common types of default:\n*   **Mortgage**: Default generally begins after 30 days of nonpayment. After three to six months of missed payments, a mortgage lender will likely initiate the foreclosure process and ultimately attempt to sell the home.\n*   **Auto loan**: For some lenders, an auto loan can go into default when you're as little as 30 days late on payment. Once you're in default, the lender can repossess the vehicle and sell it at auction.\n*   **Unsecured loan**: Default on an unsecured loan (one that isn't backed by collateral) can happen after 30 to 90 days of missed payments, but lenders may use differing timelines. Default will typically result in the debt being transferred to a collection agency, and you may be sued in an attempt to get payment for the debt.\n*   **Credit card**: Six months of nonpayment on a credit card usually results in a charge-off, at which point your debt is sold to a collection agency.\n*   **Secured credit card**: If you default on your payment, the creditor can use your deposit to cover the balance due. If the deposit doesn't cover your bill, the debt could be charged off. Keep in mind that defaulting has credit consequences even if the deposit fully covers your outstanding balance.\n*   **Student loans**: How long it takes to default on a student loan varies based on the type of loan as well as the lender or loan servicer. The default process for private student loans could begin as soon as you miss one monthly payment, and result in the loan being charged off after a certain period of time. Federal loans go into default once you're nine months late on your student loan payments, and may result in wage garnishment and tax refund withholding. END