Does one late payment affect applications?

theowl_2

Hi,

I had an unblemished credit history until last month, when I made a late payment to my Tesco credit card. It was unintentional; I had thought I had set up a direct debit to make minimum payments when I opened the account, but I had not. Of course I know that doesn't matter - I have made a late payment.
As soon as I realised, I phoned Tesco and paid that and the next month's minimum balance (and set up the direct debit).
Until then you could probably say I was a low risk to banks etc: own home, never missed payments for over six years, only a few accounts etc.
I have just applied for the experian credit report, but while I wait, I was hoping for advice as to where I now stand. I know it's ridiculous that I should now possibly be rejected for certain products, but having read other posts, it seems to me that it might be the case.
So how far do you think this will influence decisions? I was planning to open a A&L premier direct account, but read on that thread that A&L advised one rejected applicant that you will only be approved for an account if your credit record is pristine. I was also thinking about opening an egg money account and arranging a balance transfer with another bank. Now, I am considering forsaking these plans as I might get rejected and therefore further damage my record.
When I asked Tesco if this late payment would affect my credit file, I was told that they have to share the information with agencies, but in her opinion if I had been clean for six years it shouldn't be a problem.
Has anyone in a similar position been rejected/accepted after this?
Thanks

researcher

I have had an almost identical experience with the same companies about 18 months ago. My application with A&L went through with no problems - and a subsequent application to Capital One for an 18 month 0% cc went through with no problems too. Did Tescos waive the late payment fee? I'm not sure if it would make a difference, but I remember they did with me.

theowl_2

That's very reassuring. How long did you wait before applying for the other accounts? As you know this happened to me last month and I am a little wary about applying so soon. Yes, Tesco refunded my late fee too as a 'goodwill' gesture, but I was told that they would make a note about it in case it happened again.

researcher

I can't remember the exact dates, but it was quite soon after. Certainly only a few weeks. One bit of advice I would give re: A&L Premier direct account is to do your own DD transfers - as they mucked mine up and caused me no end of problems - once working it's great, but their change over proceedures are c**p!

bunking_off

I wouldn't like to say for sure. However, on Stoozers the only way the CCs make any money is for you either not to pay off the balance, or to miss a payment so they can impose a late payment fee. On that basis so long as it's the odd one and not a string of defaults, it might actually work in your favour on future applications....

The_Boss

If thats your first missed payment, as you say, then there is also tonnes of history saying you have been organised. I'm sure it wouldnt affect a decision too much - certainly not a 'no' instead of a 'yes'. Dont lose any sleep over it.

super_mario_4

i work for a credit card company and i very much doubt it will show up due to how the updating process works

We only update our records with experian at the months end. so if you fall behind on the 5th of the month, but have brought your payments up to date by the 25th then by the time we report to experian on the 1st we will report your account as up to date for that month.

Another point is that you arent in arrears until your next months statement is produced. So your 2nd of March payment might fail, you next statement is then produced on the 18th of march which means that on the 19th you are in arrears. However if you can cover your arrears by the 25th lets say, when we come to update your experian records at the start of arpil you will show as up to date :j

Clariman

I don't think that one late payment will make much difference, but an additional one may well have a negative effect (if this one gets reported to the CRAs).

Clariman

magentadreamer

I have a late payment -from several years ago - I forgot to pay the card one month - it has not caused me any problems - car loan granted, 4 credit cards granted since it occured. It did make me realise I needed to be a bit more organised and not file statements on the hall table to be read! So I'd say one miss doesn't make that much difference but another one might!

The_Boss

I did an internet search for car insurance recently, and found 5 unrecorded enquiries on my credit file after. Now I know that these wont be held against me, but still made me a bit angry to see that I had no warning of any sort of check for a quote on insuresupermarket.com

YorkshireBoy

The_Boss wrote:

...made me a bit angry to see that I had no warning of any sort of check for a quote on insuresupermarket.com

You would have seen the 'warning' had you read the T&C's...

16. Insurance products and services
...<snip>...
The information you supply maybe used to carry out certain credit checks through licensed credit-referencing agencies. This is used as part of the underwriting process for some of the insurers and a record of this search will be made.

http://www.moneysupermarket.com/legal/terms.asp?Source=IS