4 late/missed payments - effect on credit score?

oceanscape

My wife has 4 "missed/late" payments over the last year on her credit report. All of these are with catalogue companies and it's simply been a case of her not setting up a direct debit and then forgetting to pay - extremely annoying for me since we have the money there, she just hasn't paid it. Useless!

Is this likely to have a significant effect on our credit scores? We are financially linked so will it also affect me, if I apply for a new credit card?

How long do these go against us - will they drop off for good after 1 year or are they still seen by lenders?

We are also moving home soon and will need to remortgage - how will these affect our mortgage applications?

I'm really annoyed that this has happened, but just want to get past it and ensure it does not happen again. We now have DDs set up on ALL her credit accounts, so everything should be running smooth.

Thanks for any advice!

Moggles_2

Is this likely to have a significant effect on our credit scores? We are financially linked so will it also affect me, if I apply for a new credit card?

If you share a financial product (eg. mortgage) with someone else, then you are financially linked to them and their affairs could have an effect on your ability to get credit.

Innocent_Guy

oceanscape wrote: »

My wife has 4 "missed/late" payments over the last year on her credit report. All of these are with catalogue companies and it's simply been a case of her not setting up a direct debit and then forgetting to pay - extremely annoying for me since we have the money there, she just hasn't paid it. Useless!

Is this likely to have a significant effect on our credit scores? We are financially linked so will it also affect me, if I apply for a new credit card?

How long do these go against us - will they drop off for good after 1 year or are they still seen by lenders?

We are also moving home soon and will need to remortgage - how will these affect our mortgage applications?

I'm really annoyed that this has happened, but just want to get past it and ensure it does not happen again. We now have DDs set up on ALL her credit accounts, so everything should be running smooth.

Thanks for any advice!

HI There,

These could potentially stay on file for 6 years..

This COULD mean that you get offered a higher rate as you are more of a risk.

4 missed payments could cause an adverse marker. Could you confirm if they were on 1 account and was consecutive?

Moggles_2

How long do these go against us? Will they drop off for good after 1 year or are they still seen by lenders?

Each late or missed payment would generally disappear from view after 36 months (Experian), 48 months (Equifax), provided that she keeps the accounts open and active.

(If she were to close the accounts, the most recent payment history stays on file for 6 years.)

That said, if there's no further negative data, the effect on you would be fairly short-lived. These records become steadily less significant as they recede into the background.

oceanscape

I appreciate your replies.

They were not on one account and were not consecutive. I think 2 were with one company and the other two with a different 2 catalogues.

There is no other negative data, as far as I know, but I'm just worried these might screw up our chance of getting a decent mortgage rate.

Innocent_Guy

oceanscape wrote: »

I appreciate your replies.

They were not on one account and were not consecutive. I think 2 were with one company and the other two with a different 2 catalogues.

There is no other negative data, as far as I know, but I'm just worried these might screw up our chance of getting a decent mortgage rate.

I think this could cause you to be offered a slightly higher rate however not too bad. If you have years and years of unblemished credit history these will not be too dramatic.

I would personally speak with a mortgage advisor and see what they think..

Remember some people get half decent rates even with DEFAULTS!!!

_Andy_

Really depends on things like your LTV etc. Worse case would be just sticking to your existing mortgage lender as they won't re score/search you (assuming the borrowing amount stays the same that is).

Sergio_Baptista

if its all from different accounts then its not going to make much of a difference..its not going to affect your credit score to that extent that no bank would deal with you..i think its totally natural and these things can happen un knowingly also some times..

cmatt360

Moggles wrote: »

Each late or missed payment would generally disappear from view after 36 months (Experian), 48 months (Equifax), provided that she keeps the accounts open and active.

(If she were to close the accounts, the most recent payment history stays on file for 6 years.)

That said, if there's no further negative data, the effect on you would be fairly short-lived. These records become steadily less significant as they recede into the background.

answered a question i was going to make a new thread for :T thanks :beer: