Impact of (old) late payments on credit rating

Indebted.Dunce

Hi all,

Just had a quick question with respect to late payments made in the past (pre-Dec 2008). How much of an impact does this have on current credit rating? I have included information about the account below:

Callcredit
Lender HSBC Bank
Account Type Credit card
Account Opened 18 October 2005
Last Updated 31 May 2009
Account Terms Monthly repayments
Payments Started 18 October 2005
Opening Balance £1
Lump Payment Not Recorded
Current Balance Closed 29 May 2009
Credit Limit Not Applicable
Monthly Change Account Closed
Worst Status Either the payment due wasn't made
for 6 months, or the account is 6
months in arrears.
Last Status The account has been settled/closed.
The payment status has been reported
as up to date.
Accountholder Status Normal
Account Status Normal
Reported Until May 2015
Default Date Not Defaulted

Equifax
Lender HSBC Bank
Account Type Credit Card
Account Opened 18 October 2005
Last Updated 25 June 2009
Account Terms Monthly repayments
Payments Started Not Recorded
Opening Balance £0
Lump Payment Not Recorded
Current Balance Closed 29 May 2009
Credit Limit Not Applicable
Monthly Change Not Available
Worst Status Either the payment due wasn't made for 6 months, or the account is 6 months in arrears.
Last Status The account has been satisfactorily closed
Accountholder Status Not Available
Account Status Not Available
Reported Until May 2015
Default Date Not Defaulted

Experian

Settlement Date: 29/05/09
Account Updated to 07/06/09


Account Status Details: (1 - 12 months)

Account Status Code: [0] 0 0 0 0 3 1 1 0 0 6 4
Balance: £0 £20 £59 £89 £112 £130 £128 £114 £99 £99 £98 £96

Account Status Details: (13 - 24 months)
Account Status Code: 3 3 1 0 0 0 2 1 0 0 4 2
Balance: £94 £93 £91 £78 £64 £61 £482 £462 £443 £435 £525 £517
Settled accounts are kept on file for six years from the settlement


Thanks for all your help

ID

sfax

I would ignore any late payments more than 3 years old

izools

Yeah, they're ancient.

It might stop you getting the best limits on the creme de la creme of cards e.g. Barclaycard Simplicity 7.9% card, but on the whole shouldn't matter so long as you haven't missed any payments since and have held well run credit cards with other lenders to the present day

Indebted.Dunce

Thanks both

Apart from the bad patch in 2008-9, where I managed to accumulate the late payments mentioned below and a default (20/03/2007), I have not had any late payments/defaults.

The only thing that may matter is the fact that lenders may think that I am over leveraged / high indebtedness. I have quite high CC balances (absolute and relative to my credit limit) albeit on promotional rates, been maxing out one of the ODs that I have. This is something I am working on reducing at the moment.

Finally, I had used the cash withdrawal facility reasonably regularly till last year.

I am guessing based on the late payments albeit old, high indebtedness and cash withdrawals the impact may be quite severe?

droiderm

My experience is the default won't help.
Which cards do you have ? Limits ? Balances ? What's your salary

What you trying to achieve ?

sfax

Indebted.Dunce wrote: »

Thanks both

Apart from the bad patch in 2008-9, where I managed to accumulate the late payments mentioned below and a default (20/03/2007), I have not had any late payments/defaults.

The only thing that may matter is the fact that lenders may think that I am over leveraged / high indebtedness. I have quite high CC balances (absolute and relative to my credit limit) albeit on promotional rates, been maxing out one of the ODs that I have. This is something I am working on reducing at the moment.

Finally, I had used the cash withdrawal facility reasonably regularly till last year.

I am guessing based on the late payments albeit old, high indebtedness and cash withdrawals the impact may be quite severe?

Your debt to limit ratio is important, as is your overall debt and limit against your income.

People say 30-40% debt to credit limit is seen as good whereas 80%+ is seen as up to your eyeballs. I'm often around 50% as I use multiple BT cards instead of short term loans. This doesn't usually present any problems for new credit

sfax

I think it may be wise to wait until the end of March and look to get that default off your credit reports as it will be 6 years old

Indebted.Dunce

Thanks Droiderm

droiderm wrote: »

My experience is the default won't help.

I don't think it does but its dropping off in a month so that is good news.

droiderm wrote: »

Which cards do you have ? Limits ? Balances ? What's your salary

In no particular order (card balance/limit)
CapOne 0/1000
Natwest 1000/1250
Natwest 2400/3050
Barclaycard 4625/6200
Barclaycard 1585/2000
MBNA 4950/5600

In addition to the cards, I have a loan (which ends at the end of the year) and access to a couple of ODs:

Natwest Loan 3430
Natwest OD 800/1000
Barclays OD 0/3250 (don't use this at all)

Salary: depends on the bonus but a base of £46k plus bonus ranging from 5 to 20%

droiderm wrote: »

What you trying to achieve ?

Not trying to achieve anything in the next 6-12 months, just trying to understand the impact particularly as I am hoping to buy a house with my partner next year.

Indebted.Dunce

SFAX,

I agree with you in terms of both waiting for the default to fall off and the debt ratios.

I think my current ratios (both debt to limit and debt to income) may appear to be quite high despite all of it being on promotional rate.

ID

molerat

Cold facts

You have available credit in excess of 50% of your income (even taking the 5% bonus as salary).
You are using 70% of that credit.
You have a history, although in the fairly distant past, of late / missed payments.
You have in the past regularly used credit card cash withdrawals.

If any new borrowing is passed to manual underwriting all those could add up to a no. Before you try to get any other credit you need to

a) Wait for those black marks to drop off (obvious why)
b) Pay down as much as you can off the cards and OD, maybe close some down (reduce £ and % exposure)
c) Do not use CC cash withdrawals. (poor money management)

droiderm

I would agree you need to start paying the debt down .
Your going to have to start saving before you can get a mortgage .