If I cancel a direct debit does it affect my credit score?

Katskiba

Afternoon all! I've been working on rebuilding my credit score, and slowly but surely I'm getting there. I had a bill come out over the weekend that I'd completely forgotten about, and it's wiped out my funds. I've got two bills due out on Wednesday, but I get paid on Friday. If I cancel these then pay straight away on Friday will this affect my credit score? I'm absolutely furious with myself, am normally very on the ball with my direct debits but this one slipped my mind. Thanks in advance for any advice 😊

Willing2Learn

Hi Katskiba and welcome to the forum

Cancelling a Direct Debit does not impact a 'credit score'. But since your 'credit score' is neither used nor seen by lenders, it doesn't really matter anyhow. Your 'credit score' can basically be ignored.

BoGoF

However if by cancelling the direct debits you pay late and the creditor records it as late then your credit history will be affected.

moneywow1

Will friday still be within the period you can pay without being marked as a late payment? If so, it's fine.

CakeCrusader

It's worth checking your credit file now to see which bills are on there. My water bill's on there, they also issue CCJ's at the drop of a hat (shouldn't be an issue for you if you're able to set up a payment plan/DD really quickly). It's often best to call the bill company and change the payment date. If you make it for 28 days time it shouldn't affect your (fictitious) credit rating.

System

Direct Debits are on 3 working day cycle - each organisation may not even know it's unpaid until Friday.

I would suggest you pay them by FP on Friday AM or arrange a different payment payment date with them.

Ben8282

Katskiba wrote: »

Afternoon all! I've been working on rebuilding my credit score, and slowly but surely I'm getting there. I had a bill come out over the weekend that I'd completely forgotten about, and it's wiped out my funds. I've got two bills due out on Wednesday, but I get paid on Friday. If I cancel these then pay straight away on Friday will this affect my credit score? I'm absolutely furious with myself, am normally very on the ball with my direct debits but this one slipped my mind. Thanks in advance for any advice 😊

Why are you having to rebuild your credit score? Why does it need rebuilding?
It really doesn't matter about your credit score being affected but if the payments are reported as late it may have an adverse effect on your future ability to obtain credit.
You don't say what these payments are for so we can't know if they are reported or for what sort of amounts. If relatively small could you borrow the money from somebody until pay day? Could you perhaps speak with your bank and ask if they could give you an overdraft facility/increase your overdraft facility? If they are for small amounts the bank may well pay them anyway.

whitepaper

Katskiba wrote: »

Afternoon all! I've been working on rebuilding my credit score, and slowly but surely I'm getting there. I had a bill come out over the weekend that I'd completely forgotten about, and it's wiped out my funds. I've got two bills due out on Wednesday, but I get paid on Friday. If I cancel these then pay straight away on Friday will this affect my credit score? I'm absolutely furious with myself, am normally very on the ball with my direct debits but this one slipped my mind. Thanks in advance for any advice ��

Hello Katskiba, and a warm welcome to MSE :hello:

Direct debit is only a form of paying. Credit records reporteed to CRA's do not reflect how you pay, only how you manage your credit agreement.

Refer to your contractual credit agreement to see if what you propose would put you in breach of that agreement.