Don’t let Christmas sink your credit score
MISSED bill payments surge in Januar y as people struggle to keep on top of their finances after the festive spending spree.
Analysis from credit checking company ClearScore reveals that 30-yearolds are the most likely to miss a payment or default after several missed payments.
The firm is warning people to keep an eye on payment dates over the festive season so they don’t end up wrecking credit scores, which means they will struggle to get accepted for credit cards, loans or mortgages in the future.
Lenders regard those who have missed payments or defaulted as a greater risk and will either decline applications or charge higher interest on products.
If you miss a payment it will be marked on your credit report and is likely to have a negative impact on your credit score. Missing multiple payments could be declared as a default, which carries a much heavier penalty. This default will stay on your report for six years, even when you pay off the debt in question.
Justin Basini, chief executive and co-founder of credit checking company ClearScore, said: “Christmas is a real test on our finances and with many people paid early before the break, it means stretching pay packets even further.
“The danger is that this could mean a financial festive hangover come the New Year, especially if you start missing vital payments as a result.
“Any of us may miss payments from time to time but this can have a huge impact on your credit score.”
To keep your credit score looking healthy follow these simple steps :
Ensure you make all payments on time each month. Think about setting up direct debts for regular bills to ensure you don’t miss any – and you at least pay the minimum amount on any credit card debts.
IF you are struggling to make ends meet, get free help immediately. Don’t wait – the longer you leave it the worse the situation will get. Contact Citizens Advice, call the National Debtline on 0808 808 4000 or Stepchange Debt Charity on 0800 138 1111 or stepchange.org