Help and advice if you incur credit card late fees
Do not threat if you have missed a repayment on your credit card, it has happened to the best of us. We are here to guide you through the process of missed credit card repayments and the steps to take moving forward to refrain from this occurring again.
Missing a credit card repayment can stay on your credit record for at least six years, so don’t take this with a pinch of salt, meeting your repayment curfew is extremely important, especially if you are seeking to take out further credit in the near future.
If you apply for credit and lenders see that you have missed payments with previous creditors this may lead to you being denied credit. So don’t expect to get good interest rates if you’re making a habit of missing your repayment curfew. Late or missed payments will stay on your credit report for six years and as a result is likely to impact your overall credit score, meaning that any loans or credit you do apply for will come with a higher premium/interest rate.
Your credit record is made up of a number of different factors of information, so just because you have missed one repayment does not mean your credit score will be at rock bottom. If you have other favourable elements on your credit report, such as being registered on the electoral register, and staying at the same address for a number of years, you may find that one missed or late repayment will have little to no effect on how lenders view you.
As your late or missed repayments become older they have less of an impact on your credit score, so if you find you have missed a payment in the last couple of months refrain from applying for further credit for a period of time in order to get the best possible lending opportunities.
Tips to ensure you don’t miss payments again
- Set up a direct debit so you never miss a payment date (If you are struggling with debts set this to minimum payment until you have spoken to an adviser on how best to deal with debt repayments)
- Set your payment date to coincide with payday, that way you will always have the funds available to make that minimum payment needed.
- Speak with your bank about getting payment reminders sent to you via email or direct to your phone via text message.