Improving Credit Score-late payments

Newmummy123

Hello,
I have two credit cards, both of which I've just paid off. I forgot the online log in details for both of them; one had a direct debit set up so the minimum payment was made every month, whilst for the other I relied on the bill coming through the post and going into the bank. Unfortunately with the second I was late with a few payments (had a new baby, was a bit overwhelmed by everything-stupid, I know!). My husband and I are looking to buy a house in the next year or so and I'm worried that the late/missed payments will look bad on my credit rating. I'm planning on using one of the cards regularly (paying off the balance in full every month) in order to build up my credit score. Would it be better to do this with the one where I have a good record (by paying every month) or try to salvage my reputation with the one I have a bad record with?
Thanks in advance for your help!

redpete

I doubt it will make any difference. A lender will look at the totality of your history, not how any one account has a balance between good and bad stuff.

Anthorn

Newmummy123 wrote: »

Hello,
I have two credit cards, both of which I've just paid off. I forgot the online log in details for both of them; one had a direct debit set up so the minimum payment was made every month, whilst for the other I relied on the bill coming through the post and going into the bank. Unfortunately with the second I was late with a few payments (had a new baby, was a bit overwhelmed by everything-stupid, I know!). My husband and I are looking to buy a house in the next year or so and I'm worried that the late/missed payments will look bad on my credit rating. I'm planning on using one of the cards regularly (paying off the balance in full every month) in order to build up my credit score. Would it be better to do this with the one where I have a good record (by paying every month) or try to salvage my reputation with the one I have a bad record with?
Thanks in advance for your help!

Are the late payments actually on your credit reports? Sometimes they will be and sometimes they won't be. You don't know until you view your credit reports.

Late payments are in the history of the account. If there are only a few followed by payments on time a lender might decide that you were going through a bad patch and you recovered and you're ok now. If late payments are repeated that makes you a bad risk.

So you made a few payments late, too late to do anything about that (pun not intended). But don't do it again! Do a Direct Debit for at least the minimum payment and make sure the money is in your account to pay the direct debit. If it isn't in the account then you risk adverse entries in your bank account history in addition!