Slightly late payment

andrewi

Hello, I, due to a plumbing disaster, will make a cc payment about two days late. Last year I did the same by about the same time scale (stupid, I just forgot)
I will be able to make the payment required but last time I was served a default notice.
Does this make a substantial impact on credit rating.
The card is a Tesco one.

BugsyBrowne

andrewi wrote: »

Hello, I, due to a plumbing disaster, will make a cc payment about two days late. Last year I did the same by about the same time scale (stupid, I just forgot)
I will be able to make the payment required but last time I was served a default notice.
Does this make a substantial impact on credit rating.
The card is a Tesco one.

It would knock your credit score down a wee bit I know that..

andrewi

Thanks for the reply. Could you be more descriptive on a wee bit?:rotfl:

YorkshireBoy

As regards your 'external' credit rating, it all depends if Tesco report it as a late payment to the CRAs. They may not, if your payment hit the account before a) your next statement date and/or b) the date they report your account status.

You will certainly have affected your 'internal' credit rating with Tesco. Whether this will bring about a re-pricing of your interest rate or prevent you from getting a credit limit increase in the near future remains to be seen.

BugsyBrowne

andrewi wrote: »

Thanks for the reply. Could you be more descriptive on a wee bit?:rotfl:

As no one will never know their credit scores it is hard to tell, but from a lenders point of view a late payment is a late payment in their eyes so can only be negative rather than positive.

We don't know exactly how lenders credit scores go, it could be out of say 500 or 1500 points we just do not know unfortunately.

andrewi

Thanks, it seems that my two day delay is not good, but also not the end of the world.

bouncydog1

Why don't you set up a direct debit to pay the minimum every month and then top up with the balance? That way you will never be late with the payment - thus avoiding a late payment charge and a marker on your file.

chattychappy

bouncyd!!! wrote: »

Why don't you set up a direct debit to pay the minimum every month and then top up with the balance? That way you will never be late with the payment - thus avoiding a late payment charge and a marker on your file.

Yeah, but if the problem this time is lack of funds then the OP will be up for double charges - once for the late payment and once for the bounced DD.

coolesticeking

Having no late payments over two is of course the better option, but I guess having one or maybe two at the tops will I hope not do you too much harm.

I would suggest taking control over this now, otherwise anymore could make lenders start to think you are having difficulity with your finances unless you are in that position as we speak - having defaults would mean not being able to get credit from if not all mainstream lenders for 6 years to come.

If credit is important to you in life, then make sure this is your priority to get resolved ASAP!

Diaaaz

Try ringing their customer services and pressure them to see what they say about it. I know of a few people who just by pushing a bit got the fees refunded and were told it wouldn't be reported to credit reference agencies.

chattychappy

Well.. I wouldn't ring them before the event else they will think you have financial difficulties (which might be true) and this could cause them to withdraw further credit, increase the interest rate (subject to an opt out, of course) and so on.

After the event - if you call them and just say you forgot, then this shouldn't have any ramifications.

As a temporary fix (and it's just that) could you get a cash advance, pay it into your bank account in order to make the minimum payment? The fee/interest might well be less than the missed payment charge and the most you'll get is a marker that you took an advance - not nearly as bad as a late payment.