Late Payment/Default

milliebear00001

Hi there

I've posted this question in a couple of other threads now, but without response.

Several people have suggested in their posts that defaults and 'late'/'missed' payments are different things. I thought there was no difference and that the latter two were simply another name for a 'defaulted payment'. So...is there a difference?

Ditch_Crawler

De fault lies wid de borrower, ALWAYS! xxx

Rico6.9

Several people have suggested in their posts that defaults and 'late'/'missed' payments are different things. I thought there was no difference and that the latter two were simply another name for a 'defaulted payment'. So...is there a difference?[/QUOTE]

Defaults are nasty. A couple of defaulted payments shouldn't be anything to worry about compared with a default that would cripple your credit rating for at least 3 years.

TMoose

A missed payment is just that - it's (generally) a one-off event, and a slap on the wrist from the lender, before normal payments are resumed. This puts a "missed payment" marker on your credit file. This marker is not as significant as...

A default - usually results from a sequence of missed payments, and is the lender "terminating" the credit contract (with prejudice). This is effectively the lender's way of saying "this person did not stick to the credit agreement he signed for". This puts a default marker on your credit file. This marker will remain on file for 6 years. This is highly significant, and will result in your being unable to obtain mainstream credit.

milliebear00001

Thanks so much for that information. So, I have two late payments registered on my Barclaycard account (both paid in the correct month, but after the deadline date given on the statement). How much are these likely to affect a mortgage application?

Rico6.9

I'd say the mortgage companies will be fighting for your business. Lucky you. I hope you get a good deal.

milliebear00001

Thanks for your help. Fingers crossed!