Think I might have messed it up...

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Just on here for some advice. About 6 months ago I got my first credit card, a Capital One Classic. It started with a £200 limit. I am employed but I get paid 4 weekly which makes it difficult to have DDs coming out of my account. I decided to not set up a DD with Capital One and instead pay it manually every 4 weeks. I have been doing this for the last few months successfully, always paying off the balance in full. Never had any problems and as a result, the limit was raised to £500.

This month I made a mistake. The minimum was due on the 8th, the same day I got paid. I paid them in full that same day but because it took a few days to be posted to my account, it went through as a late payment. I was whacked with a late payment charge which took me over limit, so then I got whacked again with an over limit charge.

I realise this was my stupid error and I don't expect the charges to be removed but I am worried about how this will affect my credit record and my chances of getting a limit increase with Cap1 in the future? Since it is my first card, I didn't really understand how it worked and that is why I accidental paid late without even realising. I tried to contact them about it to see if there was anything they can do but apparently a computer controls everything and nobody can control it.

How badly will this affect me? How much is it going to impact on my chances of getting approved for another card in the future?
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Comments

  • [Deleted User]
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    Yes, it will affect you. How badly depends on the rest of your credit history, and it will diminish over time. But I wouldn;t go applying for any more cards at the moment.

    You need to set up a DD. Being paid at odd times doesn't justify not setting one up. The issue is whether you have the money or not. If you don't think you'll have the money to make the payment every month, then you need to not use credit cards. You have to make the payments and have the money in your account for the DD to go out. Knowing that the money is oging out may give you the discipline to keep some money in your account to meet the bills. If you really think you won't have the money, then you MUST pay off the card and go back to using cash and debit cards.

    The DD doesn't have to be for the full amount - you can do the minimum and top it up with another payment. At least that way, you'll at worst pay some interest, but won't get fees or impact your rating.
  • pinkarsenalprincess
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    Very wise words there.
    Being paid 4 weekly/monthly is no excuse for not being able to set up and have direct debits. I have only ever been paid monthly, since the age of 16 and pay all my bills by direct debit. You have to be organised with finances and know what is going out when so that the money is there in the bank account. If you have a DD at the end of the month before payday and there is no money left then you are overspending.
    Overdrafts transferred to MBNA £953.40/£4279.80 Car insurance (on CC) £461.98/£751.98 :mad: Bank of mum and dad £1500/£5000
    Total debt repaid £2915.38/£10,031.78 (29%):T Owed [STRIKE]£10,031.78[/STRIKE][STRIKE] £7400[/STRIKE] £7116.40 Pay off as much as you can in 2011 challenge £1127.60/£4000
  • KingElvis
    KingElvis Posts: 4,100 Forumite
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    Yep, Crapital one will not look kindly on you for limit increases at the moment.

    Just set up a DD, it's much easier and there's less chance of mistakes.
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • Malky
    Malky Posts: 694 Forumite
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    I have an MBNA card and I had a late payment earlier this year. Nothing on my credit report suggests it was late and is logged as being paid on time for that month. Get a hold of a free credit report from Experian/Equifax to double check. I dont know how long it will take to show up though.
  • smj43
    smj43 Posts: 385 Forumite
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    I think the suggestion of setting up a DD for the minimum is a very good idea. No idea why I didn't think of that. My mistake was that I thought if I was paying it every 4 weeks, I would never miss the payment due date, since that is monthly. The reason it has worked up until now is just luck that my payments were being made before the due date. It was just a matter of time before one of them would be late.

    Thank you for the advice. I will definitely not make the same mistake again.

    My question is not what I can do to prevent this happening again, I know that. Nor whether or not I can afford a credit card, I know that. I just want to know how badly it will affect me and how long for? I got this card to build my credit now it feels like I have gone back to square one.
  • [Deleted User]
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    You're probably a bit better off than square one. You've run it well for 6 months and now had a blip. Do another 6 months without further blippage and you should be looking pretty good. Not Amex-cashback-gold card-free airport lounge access-concierge service good, but good.
  • smj43
    smj43 Posts: 385 Forumite
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    Very wise words there.
    Being paid 4 weekly/monthly is no excuse for not being able to set up and have direct debits. I have only ever been paid monthly, since the age of 16 and pay all my bills by direct debit. You have to be organised with finances and know what is going out when so that the money is there in the bank account. If you have a DD at the end of the month before payday and there is no money left then you are overspending.

    4 weekly is not monthly.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
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    Think you might have that £500 limit for the next 2 years TBH.
    Remember cap 1 classic is a credit building card and already your building it up with a late payment.
  • goggle
    goggle Posts: 442 Forumite
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    I got caught out by paying manually when 2 payments went through in one "credit card month" - because I'd paid a few days "early" they claimed I was actually late paying the next month. They did waive the late payment fee when they realised my previous payment hit the account the day before their "last month" cut off & that by the time I got the late payment charge I had already made another payment unprompted ...
    Paying 4-weekly would put you into that scenario at least a coupel of times a year so a DD for the minimum amount is ideal - on a £500 limit that shouldn't be much that you need to make sure you hold in the bank between paydays!

    Of course now I try not to carry a balance at all so if I pay for something at £20 on my cc today, by tonight or tomorrow at the latest I have transferred £20 over but I know that won't work for everyone ...
  • smj43
    smj43 Posts: 385 Forumite
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    goggle wrote: »
    I got caught out by paying manually when 2 payments went through in one "credit card month" - because I'd paid a few days "early" they claimed I was actually late paying the next month. They did waive the late payment fee when they realised my previous payment hit the account the day before their "last month" cut off & that by the time I got the late payment charge I had already made another payment unprompted ...
    Paying 4-weekly would put you into that scenario at least a coupel of times a year so a DD for the minimum amount is ideal - on a £500 limit that shouldn't be much that you need to make sure you hold in the bank between paydays!

    Of course now I try not to carry a balance at all so if I pay for something at £20 on my cc today, by tonight or tomorrow at the latest I have transferred £20 over but I know that won't work for everyone ...

    This is exactly what happened. I last paid on the 12th September which was statement day so it got cut off. That means I made 2 payments in August/September period. Then I paid again on 10th October, just after payment due date.

    You say you got them to cancel the charges? How?
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