credit card payment 4 days late - how does this affect mortgage application?

melysion

I'm currently in the process of applying for my first mortgage. I took out a new credit card recently and have just noticed that I neglected to set up a direct debit (I've done so now!) which means I'm going to be about 4 days late on my credit card payment.
My credit up until now has been very good - so my question is, will being 4 days late on a credit card affect my score at all? I'm getting conflicting advice - some sources say late payments dont get reported to the credit agencies until they are 30 days late, others say they blight your record straight away. The thought of being turned down for a mortgage on the strength of being 4 days late on paying a bill is pretty upsetting so all thoughts much appreciated!!
Thanks a lot

p.s. I'm in the UK

Dave_Ham

There is no exact science to it and that is why you are getting conflicting advice.

It will show on your credit file for sure and at latest 30 days.

This will obviously not help your mortgage application, depending upon lender will depend upon how much..

melysion

Ok thanks. Sigh. That's very disappointing as I have a fairly decent deposit and currently have a mortgage in principle offer.

The system seems rather unforgiving but there it is

melysion

Just called the bank. Payment has gone though fine now and although I'm going to have a late fee charged it wont have any bearing on my credit file apparently.

So, I'll just carry on and see what happens. Wish me luck! All very scary this first time buying business!

I check my credit score regularly so will do so again in a month to see if anything has happened. Very frustating. I've had a good credit rating for years - very careful usually!!

ACG

I used to work for RBS (natwest, tesco and mint credit cards), if the payment was alte but still received and cleared (2 working days with a debit card) before the end of the month, it would not show on your credit file as being late. That was around 2008 though, so things may have changed and not all companies will work in the same way.

YorkshireBoy

melysion wrote: »

Just called the bank. Payment has gone though fine now and although I'm going to have a late fee charged it wont have any bearing on my credit file apparently.

Depending on the lender* (whom you haven't disclosed so you won't get any anecdotal advice...here or the credit card board which would have been a better place for your question), so long as you've paid before the next statement has been produced your late payment may not be reported.

I check my credit score regularly so will do so again in a month to see if anything has happened.

You don't need to waste your money on buying a 'score'. Simply pay £2 for your statutory report.


* I understand Halifax/Bank of Scotland report account status as at statement date.

melysion

The credit card is with Lloyds TSB if that helps. The payment was due on the 12th April and as my last statement was produced on the 18th March, I'm assuming my next statement will be 18th April.

Dave_Ham

More importantly, who is your mortgage application with?

Some are more flexible than others!!

YorkshireBoy

melysion wrote: »

The credit card is with Lloyds TSB if that helps.

I've no recent experience with LTSB, but I've twice (several years ago) found them to be notoriously late in reporting account status...3-4 months! However, that was on a well run account so I don't know if negative account conduct is reported any quicker?

The payment was due on the 12th April and as my last statement was produced on the 18th March, I'm assuming my next statement will be 18th April.

When will/did your payment credit the account?

melysion

The mortgage is with Leeds Building Society. The payment went though today.

YorkshireBoy

melysion wrote: »

The payment went though today.

Let's hope everything is OK then.

Just one other thought...did you get the card to transfer a balance to 0% or for 3 months 0% on purchases? If so you might want to call LTSB and verify that they haven't removed the introductory 0% interest rate...because they usually do if you breach the T&Cs.