- 15
- Feb
Consumers do not fully understand the impact of a missed loan payment. While some experts claim that missing a single credit card payment may not damage a credit rating, or even be recorded on your consumer credit information report, others claim that the risk is too great.
Sandra Quinn, of Apacs, states that missing a credit card payment does not always result in a black mark on the consumer’s credit rating.
Ms Quinn made this statement in response to research from moneysupermarket.com which claimed that a missed payment could leave the consumer facing bank fines of up to £278 for the missed payment, the result of losing the zero interest rate, and could result in damage to the consumer’s credit rating.
“A late payment on its own won’t necessarily damage your credit rating,” she said.
The black mark earned by the missed payment is calculated based on the duration, whether the payment is 30, 60 or 90 days late.
The moneysupermarket.com study claimed that 62 per cent of zero per cent credit card introductory offers automatically charge a typical rate of interest if a payment is missed. Some also charge a fee.
Moneysupermarket.com also claimed that borrowing money becomes more difficult when a missed payment appears on the customer’s credit profile.
Rob Kenley, of moneysupermarket.com, said:
“Those on a zero per cent balance transfer introductory period may not be aware of the severe penalties a single missed payment can result in.
“Failing to make a repayment could also have a negative effect on their credit profile,” he added.
Mr Kenley suggested that the missed payment will cause a ripple effect, increasing the fees and interest rates on everything the consumer tries to buy, from mortgages to bad credit loans.
