Amex Late Payment - Long term impact on CR

optibearus

Hi all,

First post from a somewhat concerned newbie.

Unfortunately I was two weeks late making a payment on my AMEX last month. I have taken out a DD with them to ensure this does not happen again.

I've called them up, apologised and asked for clarification if this is going to be reported to the CRA's. I've had somewhat conflicting responses. 1st time the support person I talked to wasn't sure and said they would have to check, the 2nd time they were adamant it would be.

My record is otherwise spotless. In a few years we will need to look for a new mortgage when our current one goes onto a standard variable.

I'm not disputing the late payment. I would just like to understand:

1. Does anyone have experience of this and can say for sure if it will or will not be reported.
2. If it is reported, what are the likely consequences. Especially with respect to hunting for a new mortgage in two years time.

Thanks for any help.

aymz1983

I'm not sure if it would be put onto your file or not - I would have thought so - but as for affecting mortgage offers - I would think not, especially two years after the fact.

Tixy

If it was a whole 2 weeks late then it is likely to appear on your credit file (unless you can get them to agree not to report it).

Whilst missed payments do have an impact that does generally lessen in time.
I would think a single isolated missed payment would likely have a negligible impact after 2+ years.

Thrugelmir

A single late payment is unlikely to cause issues. If your application in all regards meets the lenders criteria.

giblet10

American Express will almost certainly report this - they are very unsympathetic to late payments and subsequent pleas.

But, shouldn't impact your mortgage in a few years, if just the one. We all make mistakes.

bengal-stripe

optibearus wrote: »

2. If it is reported, what are the likely consequences. Especially with respect to hunting for a new mortgage in two years time.

At present it's impact will be pretty bad, as every potential lender will wonder whether this is the first sign of a financial meltdown. In two years time (presuming there are no repeat entries) it will just be seen as a one-off and will have very little (if any) impact.

InsideInsurance

It varies by provider.

Typically what is sent to the CRAs is a snapshot of a single day and this is sent once a month. I know with Barclaycard that if you miss the payment date but the payment is made and clears before the date they start the process of running the snapshot then it wont be reported as a late payment.

Of cause there is an element of luck as to when your payment date is in relation to when the snapshot is. If the two are close there is little chance of getting away with the late payment. If they are at opposite ends of the month then you've technically got lots of time, from a CRA perspective, to make it back into the green.

The same applies to being over your limit.

A single late payment a few years ago on an otherwise spotless credit record is not going to make a material difference to all but the absolute strictest lenders. Make a habit of it and then its a problem

optibearus

Hi all. Just a note to say that yep, it did show up as a hit on the credit report.

Appreciate the re-assurance and I won't worry about it any further. However I will ensure it does not happen again.