This might be a stupid question but.......

licious

Can anyone tell me if a default for 'late' payment is as bad as a default for 'non' payment please??

Sorry if I'm being a bit thick, but just wondered if late payment was looked upon more favourably than non-payment?!! (Probably not like!!)

Thanks x

Tixy

In terms of your credit report - 1 late payment is not as bad as a non payment.

An actual default on your credit file is usually only after 3-6months of non payment or underpayment, a default is pretty serious. But they have to send you a notification before they can put that on your credit report..

licious

Thanks for that Tixy.

I've had a some problems for about 9 months where I've been late paying cc bills but have always managed to pay the minimum amount, albeit a couple of weeks late.

They have sent me default notices, usually only 2 days after my due date.....makes me wonder if there is someone sat at a computer constantly watching your account and as soon as you're a day late the press a button and a letter gets sent!!

Anyway, I'm just about back on track now....paying on time and under my credit limit!

Once again, thanks x

niccatw

Licious, have you got yourself a free trial to check your credit report? Generally you'll have a wee green light for up-to-date paymets, a wee amber light for late payments and a red light for non-payments.

It probably will affect your credit rating at the moment but not as seriously as a default. It might mean you don't get the deals at the rates you want. But the good news is, since you are back on track, there'll be lots more green lights so any creditors checking your file will see it was just a blip over a period of time. Different creditors rate risk differently, so it's not a lost cause. However, if you don't need to be applying for anything that needs a credit check at the moment, I'd hold off until you've had a good run of paying on time.

Well done on getting back on track.