Impact of bounced DD on credit score

oceanscape

I had a bad month and stupidly forgot to transfer some money into my main bank account. I had 5 DD payments to card companies bounce. I called up all the Credit Card companies within 2 days of the bounce to pay the due amount over the phone.

Now apart from the nasty missed DD fees my bank will charge me, and the late payment fees from the CC companies, what are the other repercussions of this messy mistake? Is my credit score now ripped to shreds?

Thanks.

xkittyxcatx

It depends really. Banks generally update credit reference agencies once a month. I know of 2 who do it on the 15th. That means if you showed as in arrears, paid it, and got out of arrears before they updated with the CRA then you would show as up to date and no missed payments. If you missed it, and it hit the date then your credit file will show as you being one down, which would effect your credit score.

MortgageChallenge2011

Firstly check the direct debit will not represent again as you have paid over the phone. If the direct debit comes back from the bank as "please represent" sometimes they will put it back through automatically even if you have paid over the phone.

As the direct debit can represent again its normally if the second time fails it will effect your credit rating.

My card payment is due on the 2nd/3rd each month and the statement is produced on the 10th. So if its not cleared by the time the statement is produced it will black mark you as there would be nothing credited therefore classed as 1 missed payment when gets reported to the CRA's.

xkittyxcatx

Actually, also with direct debits you bank will class it as paid originally. It takes 3-5 working days to show to them it bounced, and as mentioned above they can then try and represent, which follows the same process. So if you paid quickly enough you might be ok.