Missed payment

johnboy13

How bad is 2 missed payments recently on a loan, on your credit file, compared to a default or is it just as bad.

TheSpectator

It's only bad if you intend applying for credit in the foreseeable. Have you now paid the arrears?

johnboy13

Thanks for your reply, I haven't paid the arrears and will be trying for credit in the next 12 months. I just couldn't afford the payment this month. I paid last months normal payment but missed the one before that. I had an unexpected bill 3 months ago and its knocked me for 6.

TheSpectator

The longer it goes on as shown in arrears the more damage you are doing.

johnboy13

So if I can repay the arrears off within 6 months will that av a less affect. Thanks.

TheSpectator

Possibly, but your chances off new credit with late payment markers in the previous 12 months are reduced. Depends what the new credit is and how strict the lender is.

CliveOfIndia

johnboy13 said:

 will be trying for credit in the next 12 months.

It may be worth considering whether the credit you're planning is really necessary (irrespective of whether you're actually able to obtain it).  Unexpected bills are sadly a fact of life in reality - if you don't have savings put aside to cover just such an eventuality, what will you do the next time you have an unexpected expense?  Especially if you're also paying off an additional line of credit.

I hope this doesn't sound like I'm preaching, that's really not my intention.  Just trying to offer an objective opinion

johnboy13

Thanks, Spectator, for been helpful.
CliveOfIndia, it's for a mortgage. I will have a deposit through inheritance. 

Mr.Generous

johnboy13 said:

Thanks, Spectator, for been helpful.
CliveOfIndia, it's for a mortgage. I will have a deposit through inheritance. 

Home ownership brings a raft of extra costs - but I'd always say it's the way to go! The problem is if you can't save towards a home you can't afford to run one unless you are going to have a substantial rent saving then that should do it. Don't expect to have any spare cash though, and once you have a home build up an emergency fund as the number 1 priority before something happens.

TheSpectator

johnboy13 said:

Thanks, Spectator, for been helpful.
CliveOfIndia, it's for a mortgage. I will have a deposit through inheritance. 

I was hoping you were going to say it wasn't a mortgage. You really need to get those arrears cleared asap then and find a good mortgage broker.

johnboy13

Thanks all for your knowledge, much appreciated.