Applying for a loan

SupermumTGF

Hi all
Unfortunately after years of being a careful and responsible borrower I have ended up with a late payment and a query on my very account which has been registered on my credit files. Devastated!! I've paid the item off in full and considering closing the account. THis is due to an item I believed was on bnpl yet the code was never applied as the item was only £8.
However I would like to apply for a loan next year February for £10k
Can you pls advise whether a late payment from a full year ago will prevent or minimize my chances in applying for a loan with HSBC (my main bank)?? I have had a loan from them in the past, have a cc with £8k limit currently owing £200.
Also have Isa and saving bond with them but I'm unsure whether that contributes or strengthens the apllication.

All replies welcome.

Thanks for reading

SupermumTGF

Thanks for reading

Hazzinho

Can't see one late payment a year ago having much impact, if you are rejected it's likely to be other reasons like too much debt as a percentage of your salary. Your total debt plus the lian should be less than 50% of your salary. For an £8k loan alone you'll want to be on more than £16k for an unsecured loan.

GingerBob_3

I rack up the occasional late payment on credit cards - though nothing recently. It's never affected my ability to obtain credit. I suppose a problem might be an automated approval system of the "computer says no" type, but surely not for one late payment.

There seems to be a trend here, concerning Very. They are clearly a problematic company when it comes to credit reporting. They appear to have opaque T&Cs in some respects.

To be on the safe side I would recommend steering clear of Very (and maybe catalogue companies generally?) and closing any accounts you have with them.

SupermumTGF

Thank you for your replies. It's a late payment and a query so for 2 months it shows the account is in trouble.
My salary reflects well and my debt is less than £400. (Which imy brother owes me as he just moved home) between my HSBC, Tesco credit card and Argos card the limits permit around £15k.
I was also wondering if writing a notice of correction will support my application?

Thanks for reading

GingerBob_3

A useful enquiry to make would be - which of the CRAs does Very report you to, and which of them does HSBC use? I seem to recall that HSBC only uses Equifax, but I may stand corrected on that - anyone?

SupermumTGF

GingerBob wrote: »

I rack up the occasional late payment on credit cards - though nothing recently. It's never affected my ability to obtain credit. I suppose a problem might be an automated approval system of the "computer says no" type, but surely not for one late payment.

There seems to be a trend here, concerning Very. They are clearly a problematic company when it comes to credit reporting. They appear to have opaque T&Cs in some respects.

To be on the safe side I would recommend steering clear of Very (and maybe catalogue companies generally?) and closing any accounts you have with them.

I certainly do agree Bob, they are extremely quick to record and tarnish ones credit file. I recently had a £8k credit limit but as a result of all this asks them to reduce it. I have one item on a bnpl puchase which I've allowed someone to borrow but I was thinking of paying it off cash and take the money back each month. However I also wanted to redeem myself but my latest payment came up as UC which I will be challenging.
So in your opinion is it worth closing the account or all 3 of them. 2 have nil balances and just pay off with my own money the outstanding bnpl item or continue to allow my brother to pay monthly towards the item and clear it before it becomes interest chargeable?

SupermumTGF

By the way the reason I was made aware the £8 item was not paid on time was because I submitted a pre mortgage application which was refused to my surprise. It was the same month the late payment was applied. So I am aware that the query and late payment defiantly was defiantly considered serious enough to decline my application.

GingerBob_3

SupermumTGF wrote: »

I certainly do agree Bob, they are extremely quick to record and tarnish ones credit file. I recently had a £8k credit limit but as a result of all this asks them to reduce it. I have one item on a bnpl puchase which I've allowed someone to borrow but I was thinking of paying it off cash and take the money back each month. However I also wanted to redeem myself but my latest payment came up as UC which I will be challenging.
So in your opinion is it worth closing the account or all 3 of them. 2 have nil balances and just pay off with my own money the outstanding bnpl item or continue to allow my brother to pay monthly towards the item and clear it before it becomes interest chargeable?

Personally I would close all catalogue-type accounts. As an industry, the companies that run them are problematic. Many of them won't let you buy anything unless you open a credit account with them, which then leaves you liable to their CRA reporting, even if you pay in full for what you've bought. You are deemed to have had credit from the time you ordered something until when you paid for it, even if you make what amounts to an immediate and full payment. As someone in another thread pointed out, it's like the window cleaner reporting your account to the CRAs because he cleaned your windows on Monday and you didn't pay him till Wednesday.

As your case highlights, it's very easy to get caught out by their well-buried and ambiguous small print. Close your accounts, tell them why you're doing so, and brief against them at every opportunity.

GingerBob_3

SupermumTGF wrote: »

By the way the reason I was made aware the £8 item was not paid on time was because I submitted a pre mortgage application which was refused to my surprise. It was the same month the late payment was applied. So I am aware that the query and late payment defiantly was defiantly considered serious enough to decline my application.

This is really bad, and yet another example of how the CRA industry is not fit for purpose. That a trivial issue like a disputed £8 "late payment" could scupper a mortgage application just beggars belief (well actually, in "Broken Britain" it doesn't).