What type of accounts can be classified under 'default' status?

Accounts that can be classified under 'default' status are primarily those where payments have not been made as agreed upon. Default status typically indicates a failure to satisfy the terms of a credit agreement, which often includes not making payments on time or at all. This can occur after a certain number of missed payments, and it alerts both creditors and collection agencies that the borrower is not adhering to the loan or credit terms.

This classification is significant because it can lead to more aggressive collection efforts and potentially impact the borrower's credit score negatively. It differentiates a borrower who is struggling to meet their obligations from those who are actively making payments or have resolved their debts, hence the importance of payment history in determining default status.