A £6.50 missed payment is destroying my credit file!

KeysMcK

Hi all,

I was hoping someone could give me some reassurance that a £6 missed payment isn't going to ruin my chances of getting a good rate on a mortgage next year. 
I'm saving for a first home deposit at the moment and if all goes well we will be ready at some point between this Winter and next Summer. 

Our washing machine broke down in January and we needed a new one ASAP. Samsung were offering next day delivery on their ultra energy efficient models, and they were also offering 0% finance via Klarna on a 3 year deal so we decided to go for it. No brainer, right? 

I was 100% sure in my mind that I'd given them my bank details to set up a direct debit when I signed up, so I just went on with my life as normal. 

Fast-forward to March and I get a Clearscore alert that there's a missed payment on my account! Turns out there wasn't a DD set up and the £6.56 payment from February was overdue. I paid it immediately and set up automatic payments (again, maybe?). 

I contacted Klarna to complain but they said there's nothing they can do. They payment was late. The DD hadn't been set up until March (although, again, I was convinced I'd done this on sign up). 

This week I got my notice that my 0% APR deal is about on my credit card so went onto comparison websites to get another 0% balance transfer and I'm being offered nothing. My credit score has taken a nose dive. Not only am I panicking about paying interest on my credit card debt, but I'm worrying that I might not be able to get a decent mortgage for years now! All over a £6 bloody payment. 

Does anyone have any tips, advice, words of encouragement etc that could help me right now? 

Thanks in advance!

powerful_Rogue

One single late payment won't make much difference. Just like 3 points on your licence for speeding when you come to renew.

Ignore the credit score, it's useless - Unless one of the credit agencies is going to supply you with a mortgage/credit card. It's a gimmick, it's the actual credit report that matters and whats on it.

[Deleted User]

A £6.50 missed payment doesn't ruin a credit file.

The drop in your credit score is irrelevant. 

Stop panicking, ignore the pretend scores and just go about your business, making sure debts are paid on time in future.

And get your credit card cleared. Relying on repeated 0% deals is far worse than a single missed payment. 

[Deleted User]

Credit scores are never seen by lenders
If you have a well managed credit file with a solid history of paying good credit history e.g. paying a card in full every month (excluding the BT card) then 1 missed payment in February likely won't be a huge problem in a year.

With your BT card, use the savings or whatever money you put aside to pay off the card in the event you didn't get a BT offer and then concentrate on using your card to buy and pay off in full every month and give it time.

KeysMcK

Thanks all - hopefully it’s short term then! I just went from multiple 0% offers to none at all and thought that might be the same for low rate mortgages when the time comes. I still can’t believe a single missed payment has had such an impact on what I’ve been offered, whilst all other accounts are on track with balances  reducing etc.

Absolutely, paying down while not paying interest is what I’m doing, not just leaving a balance to sit! 

Thanks for the words of wisdom. I’m feeling much better now.