the effect of a late CC payment

bobmonkeydog

Hi Foks

Was just wondering what effect a late credit card payment will have on my ability to get a new mortgage in a few years time?? I stupidly paid my CC late and I now have a late payment registered on my credit report - completely my own fault!!!

We are hoping to move house in 3-4 years. Will this come back to haunt me or should it be ok providing that I don't do it again??

thanks

BMD:j

bengal-stripe

In three or four years time, nobody will give a damn about one single late payment.

Just make sure, that late payment will be a one-off.

ru20205

Whilst not ideal, i wouldnt worry a huge amount.

If you are literally talking 1 month was late, then this generally doesn't have a huge impact on your credit report. Yes it will show up as being a late payment, but it is only really when you get to 3/4 months that this starts to have a negative effect and pulls your overall ability to gain credit down.

To give you an idea, i got myself heavily in debt, missed payment markers, a couple of defaults etc, basically i could not obtain any form of credit what so ever, this was 2003-2005. Luckily most of mine happened pre 2004, so a lot of the old settled accounts have now cleared from my file. I have been checking my credit reports of late and a couple of accounts which were closed 2005/2006 have still got late payment markers of 1 or 2 months next too them. I know in 2005 my credit profile was bad, really bad, Vanquis even declined me, it was that bad! Now, 5 years down the line, I have 3 major credit cards, good limits and they are platinum/premier cards. My bank credit rating is also excellent, so Lloyds have told me at my last review when they offered me O/D's & loans. Apparently im very low risk.

My reason for telling you this to to show that even though my credit report has late payment markers on it, a few years down the line, it has made no difference to my credit worthiness in the slightest, so i really cant imagine it making any difference to yours if in a few years time you apply for a mortgage.

My best advise though- Never miss a payment again!

chattychappy

The odd missed payment won't make any difference a year or so down the line. It's too normal. Recent missed payments, or multiple missed payments are a different matter. Exact scoring systems are a bit of a secret, nobody can be definitive (until it's dropped off the record).

bobmonkeydog

Thanks for the replies folks.

I definitely won't be making any more late payments and all of my credit card debt will be gone by mid next year so hopfully my credit report should be fine

Thanks again

chattychappy

Best to continue using credit - eg put normal spend through a CC and pay off each month. If you go anything length of time without using credit it might look as if you can't handle it.