Product category:
Banking / credit / debt
News Release from: Moneysupermarket.com | Subject: Credit rating
Edited by the Insidemoneytalk Editorial
Team on 11 January 2008
Almost 5.5 million Brits missed payments
last year
5.46 million consumers adversely affect their credit rating by missing payments Brits see satellite TV as a bigger priority than card repayments
Nearly 5.5 million consumers missed payments last year, putting their credit rating at risk The research by price comparison site moneysupermarket.com found 13 per cent of bill payers skipped a bill payment last year
This article was originally published on Insidemoneytalk on 19 Dec 2007 at 8.00am (UK)
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Credit cards are the most likely bills to be missed at seven per cent - more than electricity, internet, mobile phones, loans and satellite TV put together.
But missing payments on any of these will have an impact on your all-important credit score.
Credit card bills are most likely to be ignored by bill payers aged 25 and over, with this peaking among the 25 to 34 age-group at 12 per cent.
The 18 to 24 age-group are most likely to miss mobile phone payments though at five per cent.
Steve Willey, head of credit cards at moneysupermarket.com, said: "Close to three million credit card holders will have paid out over £35 million between them in penalty fees.
But it is the damage to their credit rating that is more costly to them and to the other 2.5 million consumers who have missed payments elsewhere.
"Consumers may feel by missing a payment they're saving a few pounds but in the long run, missing the occasional payment will affect your credit rating as lenders assess your overall ability to repay on a regular basis.
It's vital consumers do everything they can to protect their credit rating and this means keeping payments up to date.
A poor credit score stays with you for a long time and can mean being rejected for credit or being offered a product at a worse rate.
"It is much better to pay that minimum monthly balance rather than not pay anything at all.
By setting up minimum payments by Direct Debit, you can at least take the first step in ensuring your credit profile is protected while you decide how much extra you can afford to repay to each bill".
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