late payments / missed payments ?

stikiuk

Just a quick question,

Can someone please tell me if late payments are classed as missed payments ?
I have a couple of catalogue payments that i had paid maybe 2 days late but it shows on my credit file as 1 month late. Will this affect me in applying for a loan ??
(All of my other accounts are ontime)
Thnx in advance xx

Hanniebis

Late payments aren't the same as missed payments (and nowhere near as bad!). A late payment would show as a month late because technically you're paying for it in the next payment month. It shouldn't really affect you applying for a loan, not as badly as missed payments anyway. But that does depend on what loan you're applying for, from whom, the rest of your credit report etc. HTH.

Zapp_from_Planet_Zogg

Er... a late payment is a missed payment - you missed the date by which you were to make a payment.

Even so, it shouldn't be a problem when applying for credit unless you have lots of them showing up.

Most lenders seem to use 'status 2' defaults as the key - that is 2 months late/missed. It varies from lender to lender but their criteria will most likely be based on how many status 2's you have had in the last 12 months, then how many status 1 (1 month late/missed). Sometimes they look back longer than 12 months, depending on what the credit line is.

Not sure, but I think that status 3 includes arrangements to pay and 3 months late or more. These are very bad news for mainstream credit.

The very occasional 1 month late is not usually a problem.

_Andy_

Hanniebis wrote: »

. A late payment would show as a month late because technically you're paying for it in the next payment month.

No, it will show as '1' - the payment was not made in the month it was due and therefore was missed. The next month, assuming the payment is then made up, will show as '0'.