Brits Miss Bill Payments And Put Their Credit Rating At Risk

Nearly 20% of adults missed paying at least one bill over the last year, risking their credit rating and the opportunity to benefit from promotional rates on inerest free balance transfer or purchase credit cards.

According to recent research, over 8 million Brits missed paying regular monthly bills last year.

Credit card bills were the most likely to be missed.

The worry is that by missing such payments it can impact on a consumer’s credit rating and this can have a knock on effect when applying for a new credit card, mortgage or seeking any kind of credit.

Other bills were missed too, including council tax, electricity and mobile phone bills.

If the bill payments are being missed because you cannot keep up with your financial obligations it may be time to assess your budget and see if you can save money anywhere.

It’s important not to miss payments as although the payments of most household bills are not recorded on a consumer’s credit record, some are. For example, mobile phones and broadband do show on your file and your repayment history will also be recorded.

Failing to keep up to date with payments will not only show on your file but could eventually lead to you defaulting on your agreement, which will be a black mark for any future credit.

Kevin Mountford, head of banking at moneysupermarket.com, commented “When applying for credit, banks want proof that you are a stable, responsible customer, so if you’re the sort of person who forgets to pay on time, setting up a direct debit is an absolute must.

Also, make sure your existing credit product is suitable for your needs. For example, if you have a large balance on a credit card, it may be worthwhile switching this to a zero per cent balance transfer card as you will not pay any interest on the balance during the promotional period and your monthly repayments will be lower as a result.”

For anyone who is thinking of applying for a credit card, moneysupermarket.com has a useful credit profiling tool which displays the card you are most likely to be approved for based on your own credit score.

The search is free and doesn’t leave a record on your credit file, allowing consumers to apply for a card with confidence.