How much do missed Payments affect file??

moatmeister

After much work I now have a generally good credit file monitored regularly. However showing on experian, there are 2 missed payments for insignificant amounts from 11 months ago still showing as "missed payments in the last 12 months" and more annoyingly and perhaps more importantly 1 missed payment for £20 last month which is still marked as "account overdue" which slipped through the net when I changed direct debit details and was paid immediatley the situation was noticed.

I want to apply for a low rate large loan to pay for some home improvements probably with Santander who I have been with for years and have a cred card currently with minimal balance and a large overdraft currently unused but both run well in the past, or possibly Yorkshire Bank who unfortunatly the 11 month old issue is with. I will not do it until the recent "account overdue" updates itself to a satisfactory status in the next few days but does anyone know how much importance and weight they are likely to put on this when assessing my application? Is it worth waiting untill the others are over 12 months old or will it not actually make any difference? When do they stop having a negative effect?

Tixy

Certainly the older they get the less of an impact they should have, any potential lenders should place less emphasis on them (although of course it varies from lender to lender).

Within the first 12 months they would likely have quite a significant impact for the very best deals on the market. I wouldn't apply to Yorkshire if you missed a payment with them relatively recently. With Santander they may be prepared to place a greater emphasis on your accounts with them when assessing the credit risk.

For the sake of a couple of weeks or so I'd wait until the 2 are older than 12 months as well as the new one to show that the following month was paid on time.

moatmeister

Another concise and prompt reply thank you.

Nationwide (also clean with good history) quoted me a loan at 10.9% when their headline rate was 4.6%. The recent missed payment was from EE for my mobile phone contract. The 11 month old ones are with Yorkshire for unpaid direct debit fees but the account has not been used much and has little history good or bad other than this apart from being nearly a year old. Santander is clean and has been for years. Where is my best chance??

Tixy

I would give santander a try first.

dotdash79

Log into your online banking with santander and have a look at your offers (right hand side) see what's in there.

moatmeister

Credit file all updated yesterday.
So applied for the loan today with Santander. 15k/3yrs Instant decline. Not happy!! :mad:

They say will send me a letter explaining their decision. I look forward to receiving it. Why does everything have to be such a battle??

thebritishbloke

What's your salary?

moatmeister

declared income last year was 18k after tax etc

BeenThroughItAll

moatmeister wrote: »

declared income last year was 18k after tax etc

There's your answer. Unlikely to find any unsecured lender who's willing to risk an 83% debt-income ratio.

moatmeister

Cheers

What ratio do you think they would be prepared to "risk"?

This is where the system is all wrong. What they should say is
"You have been a good long term customer. Unfortunately we cant do that much but we can do this" Instead you have to reapply from scratch again with no idea what is going to happen and with subsequent damage to the credit file.

Nationwide will do it but at 10.9% against their headline rate of 5.9%. I dont want to (and dont see why I should have to) pay that much.

thebritishbloke

moatmeister wrote: »

Cheers

What ratio do you think they would be prepared to "risk"?

This is where the system is all wrong. What they should say is
"You have been a good long term customer. Unfortunately we cant do that much but we can do this" Instead you have to reapply from scratch again with no idea what is going to happen and with subsequent damage to the credit file.

Nationwide will do it but at 10.9% against their headline rate of 5.9%. I dont want to (and dont see why I should have to) pay that much.

Some places do that, I've requested overdraft increases with HSBC before. Asked for X amount, they offer me Y (£250 less).

You should "have to" because your credit clearly isn't good enough for lenders to want to risk it with you, you've had two missed payments in the last 12 months regardless of amount. Was this done via their soft search? Sometimes Nationwide gives you an offer via soft search, with a high APR and then refuses you after the full search.

I think the limit is about 30% debt-to-income, so I wouldn't hope to get any more than about a £6000 loan.