Default.

Default is what happens when you fail to repay a debt as agreed for long enough that the lender treats the loan as broken, with serious credit and legal consequences.

Reviewed by Joseph Citizen, Founder · Last reviewed July 12, 2026

Listen · two voices

Default

0:00 / 0:00

In plain English

Default is the formal status a loan reaches after you miss payments for a set period, well past a simple late payment or delinquency. The exact timeline depends on the loan: a federal student loan defaults after about 270 days of nonpayment, while a credit card or personal loan can default sooner. Once in default, the lender can demand the full balance, send the debt to collections, sue, or garnish wages, and the default is reported to the credit bureaus where it can sit on your report for up to seven years.

Most useful ages

18 to 70

01Why it matters

Default is one of the most damaging events for your credit and finances, and understanding when a missed payment crosses into default helps you act before the costly consequences lock in.

02The math, step by step

Miss enough payments on a cosigned private loan and it goes into default. The lender can then pursue both you and your cosigner for the full balance, and the default lands on both of your credit reports.

03What this is NOT

Do not confuse with A late or delinquent payment

Default is NOT the same as being late. A missed payment is delinquency; default is the later, more serious stage after the account has gone unpaid long enough for the lender to consider the loan broken.