| Have you recently missed a loan or credit card | | | | joint-accounts with ex-partners just in case their credit |
| payment? | | | | history gets worse after you split. |
| A lot of us have been late with such a payment simply | | | | No excuse for missing payments |
| because we've overlooked it. Although it may not do | | | | There really is no excuse for missing any payments |
| you much harm just yet it may show up on your | | | | given the ease in which we can access our bank |
| Credit Report but lenders will see that it is just a one | | | | accounts. Being able to check online in seconds and |
| off. | | | | now some banks will send you a text message to let |
| But be warned that several missed payments will start | | | | you know when your current account drops to a |
| to show multiple entries on your credit record and this | | | | certain level. |
| is where lenders will be become very wary. As a | | | | Of course the most effective way to ensure you don't |
| result you may well find it increasingly difficult to get a | | | | miss any payments is to setup direct debits. Whether |
| loan or a new credit card as lenders deem you a | | | | it's for a loan or credit card the options is always there |
| higher risk. Another side affect is that some lenders | | | | from the lender so no more forgetting to send the |
| may be willing to offer you a loan or credit card but at | | | | cheque for that months repayment. |
| much higher interest rates. | | | | And of course remember there is a double-sting to a |
| Credit History | | | | late payment. Not only can it get onto your credit |
| If you miss payments then this can stay on your credit | | | | record but you can also get a late payment charge. |
| report for up to 3 years. However if you are | | | | What to do if you don't have the funds to pay |
| unfortunate enough to have a County Court Judgment | | | | In this situation you should not bury your head in the |
| (CCJ), or worse still, have become bankrupt then this | | | | sand. Contact your lender straight away and explain |
| still stay on your credit report for up to 6 years. | | | | the situation. It may well that that your life situation has |
| Plus if you are deemed to be what's known as a | | | | affected your finances e.g. divorce, redundancy or |
| reckless bankrupt then expect this to remain on file for | | | | illness. Most lenders will be happy to accept reduced |
| up to 15 years. | | | | payments or even reschedule payments to help with |
| Having a CCJ will cost you dearly in the long run as a | | | | your situation. |
| lot of the high street lenders will not be willing to | | | | However if you find that you need additional money |
| provide you with a loan. However, there are specialist | | | | and are considering a loan then make sure not to |
| lenders or sub-prime lenders who are willing to provide | | | | apply for too many loans at once. As if you get |
| a loan so not all is lost. Expect interest rates from | | | | refused for a loan then this can appear on your credit |
| these lenders to be at least 2-3% higher than normal | | | | report and also for subsequent loan application |
| loan rates. | | | | rejections. Multiple rejections flag to the lender that you |
| As you can see having a good credit history is key to | | | | may be desperate for finance and as such are a very |
| getting a loan at the normal market rates. Also note | | | | high credit risk. |
| that having a bad credit history may also affect you | | | | The importance of your credit report |
| getting a job. This is especially relevant to the financial | | | | It's vitally important that you keep a close eye on your |
| sector where employers expect and demand that you | | | | credit report to see where you stand in the eye of |
| have a clean credit history. | | | | potential lenders. You can easily get a copy for a small |
| Missing mortgage payments can also be seen the | | | | fee from agencies like Equifax, Experian and Call |
| lender as a red flag on your account. Especially if you | | | | Credit. |
| normally pay by direct debit and if you miss a few | | | | If you find any entries on your report that are not good |
| payments the lender may feel you have taken on too | | | | then you need to ensure you do enough to clear that |
| much of a mortgage. And as your mortgage tends to | | | | entry if possible. It may well be that it's not a major |
| be one of your biggest financial commitments it is very | | | | problem but at least it could show up any unforeseen |
| important that you keep up with repayments, and on | | | | or un-expected stains which you were not aware of |
| time too. | | | | previously. |
| If you have a partner and a joint bank account then | | | | Conclusion |
| this can really affect your credit history in the event | | | | Missing payments either due to lack of funds or |
| that your partner has a poor credit history. It can mean | | | | accidentally can cost you dearly in the long run. Take |
| that you get turned down for credit so it's vitally | | | | more time with your finances each month and keep all |
| important that you are aware of your partners credit | | | | that well earned money in your pocket rather than that |
| history. And always make sure to shut down any | | | | of your lender. |