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Missed repayments: effect on credit record?

Discussion in 'Property Finance' started by TMNT, 21st Jan, 2016.

  1. TMNT

    TMNT Well-Known Member

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    So month. My off set account got low and i thought i was safe but today i got 4 letters saying arreras and u have to manually deposit

    Which i will

    But will this affect my credit record in anyway? ???
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Only if it happen a few months in a row. If it's a one off it will be fine - if you're about to apply for a loan the credit officer might ask questions about it though, but this isn't usually a big deal unless there's other dodgy looking aspects to the file.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Theoretically your credit record could be updated to reflect the late payments but I don't think this has actually been implemented yet.

    The lenders behind those letters know about it of course and they don't forget. If it becomes an ongoing problem, they're not going to look favourably on future applications, even if it's not on your credit report.
     
  4. Special order

    Special order Well-Known Member

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    You usually get a grace period of 5 working days
     
  5. TMNT

    TMNT Well-Known Member

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    Im a bit confused. Most ppl are saying better need to explain myseld. Does this mean its on the credit report or just that banks internal records.

    Obviously it wont happen again however if there is a mark everytime thats not good.

    Also my 5 days grace has long passed. Since i only got the letter today and even if process it now its going to take probably another2 days to register
     
  6. jaybean

    jaybean Well-Known Member

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    The latter. But in the future it could be the former.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I believe a lender has to given you written notification before they can list a default on your credit report.
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It won't show up as a default - but it will have an impact if you need to borrow with those lenders within the next 6 to 12 months (or even refinance to another lender for that matter as they'll deem the conduct on the account as poor).

    Cheers

    Jamie
     
  9. dabbler

    dabbler Well-Known Member

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    They won't do anything I would say if you made a simple mistake and rectify it, why would they ?
     
  10. Redom

    Redom Mortgage Broker Business Member

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    If you go apply for a new loan with that lender, they will probably want an explanation for it. On marginal deals, this doesn't particularly help and could potentially sway a deal.

    With other lenders though, it shouldn't be too much of an impact assuming its not listed (by the sounds of it, it isn't).

    Once positive credit reporting is actually implemented and rolled out - it may indeed have an impact on other lenders who may have greater access to this type of information.