Loan arrears

cumbrian82

I have an unsecured personal loan with HSBC and having changed jobs have ended up with a month where I will be unpaid. As such I'll struggle to make the payment on the loan and HSBC have said that will be ok but I will fall into arrears which I shouldn't have any problem paying back over the following two month period.

That said I have no idea what the consequences of going into arrears are?
Is it a simple case of going into arrears and then once you've paid the arrears that's it, it's done with? Or is this something that will remain on file for and effect my credit for a long period and cause me problems?

Given that I'll have no trouble paying off the arrears in the coming months if makes sense to me at the moment to not pay this month and make sure I can still afford the petrol to get to work.

crazyguy

cumbrian82 wrote: »

I have an unsecured personal loan with HSBC and having changed jobs have ended up with a month where I will be unpaid. As such I'll struggle to make the payment on the loan and HSBC have said that will be ok but I will fall into arrears which I shouldn't have any problem paying back over the following two month period.

That said I have no idea what the consequences of going into arrears are?
Is it a simple case of going into arrears and then once you've paid the arrears that's it, it's done with? Or is this something that will remain on file for and effect my credit for a long period and cause me problems?

Given that I'll have no trouble paying off the arrears in the coming months if makes sense to me at the moment to not pay this month and make sure I can still afford the petrol to get to work.

Thats a difficult one as it may well show up on your credit file it depends on the bank in question as to wether or not they would notify the credit agency's regarding a missed payment.

I think it may show up on your credit file but cannot be 100% sure.

Why not phone and ask them and then if it does create a late payment on your file then perhaps you could look to borrowing the amount from a family member or friend.

cumbrian82

So there's no standard action with arrears?

If it is noted on my credit file I assume it stays there as a note rather than being removed once the arrears are paid?

crazyguy

cumbrian82 wrote: »

So there's no standard action with arrears?

If it is noted on my credit file I assume it stays there as a note rather than being removed once the arrears are paid?

I would assume it may appear as a late payment on your credit file, cannot be 100% positive as all banks act in different ways I still sugest you call them and ask and if it is the case then either accept the late payment on the file or look to borrow it from someone.

It should also show as paid if it showed as a late payment, again you can check this with either the bank and or get a free trial on your credit report.

feeling-good

Why not ask the bank for a payment break, it may cost you a little more interest but could be so much better than having a missed payment on your credit file

Hanky_Panky

Probably the simplist option in the short term is to make a small payment towards the loan - even if it is only £5.

So if you miss the full payment then your credit file will show as being 1+ months in arrears - by paying a small amount to reduce arrears below 1 month it will still report as 0+ which looks like you have missed nothing ! eg. Normal payment = £100 per month. Miss whole payment leaving £100 arrears CRA shows as 1+. Pay £5 towards loan leaving only £95 arrears, CRA shows as 0+ - simples !