Late payment question

Tinkberbell

Hi!

I’m not good when it comes to understanding credit ratings and credit scores etc. On my Experian credit file under accounts I can see that my NatWest Account (used to be my student account then graduate etc) had a late payment (due to me trying to pay off my overdraft). Eventually I borrowed money off my dad and paid it all off in full - but for those 6 months there’s late payment recorded (2018).

On the overview of the account is says “ No issues in this account's payment history that affect your score” can someone explain this to me further please? If I wanted to get a loan, will this affect it? And what are my chance of having this removed?

Westminster

You won’t get it removed as it is a factual record of what happened.

The further into the past it goes the better but each lender has their own criteria.

Using an eligibility calculator will give you information on which lender is most likely to accept you but most lenders do not tell you the interest rate prior to a full application and it’s generally best to avoid too many hard searches.

yksi

Keep in mind that lenders do not see your "score", which is a made up number created by Experian to sell you their credit-improvement products/subscriptions.

I would say that yes, it will affect your abillity to get credit in future, as lenders can see you were late paying off a debt, repeatedly, which is an indicator of financial stress and low disposable income and/or poor financial management. I'm not saying that's actually you - your circumstances and income have probably both changed by now - but it will be a factor in who will lend you money and at what rate.

It might stop you getting a loan, but that will depend on income and what else your history shows. Use the comparison tools in your CRAs (Experian has one, Clearscore, Credit Karma etc). Those won't hurt your credit history but will give you a rough idea of whether a loan would be approved. If you get knocked back on the best one, wait a few months before reapplying.

It's almost definitely not going to stop you getting a mortgage, but a broker is your best bet if you are looking to buy before the late payments disappear off your history (after 2024).

Tinkberbell

Thank you for breaking that down to me.

I’ve just seen now having looked into my account with slightly more detail. There a note from NatWest which says “ The lender has agreed to vary your payments for a time”.

The duration or this was 6 months and below shows the late payment - everything else is in good standing.

At the time, I genuinely thought this was a arrangement to start paying back my overdraft as it was around 1,900 and did not understand at the time that it would be marked against my credit file which is what I’m so angry about right now. Had I known this I would have asked my dad for a loan much earlier and paid it off in full.

I might sound like a broken record now, but can I dispute that at least?

[Deleted User]

You can dispute anything you want, but your chances are slim. You're reliant on their goodwill.