What defines a late payment on a credit card?

January 24, 2020

What defines a late payment on a credit card?

Is There A Grace Period before you are listed as having late payments?    

Steve Sell 24/01/2020


There is and it depends on your credit card company.

The period is from 3 days up to 14 days before it is noted as late on your credit file.

Late payments or repayment information can be reported and noted on your credit file for up to two years.

Credit card late payments mean that you are failing to pay your payments by the due date.

Even after the grace period.

A payment default is usually issued or declared when you are 60 days or more overdue.

Late Payments.

Show on your credit file after 1 month as a 1, two months late as a 2, 3 months late as a 3.

When you get to six months late it is listed as an exclusion.

You may not be given  a credit score.

A payment default can be added to your credit file.

When you have missed a payment that is 60 days overdue and an amount of $150.00 or more.

Credit card providers will report your late payment information to the main credit bureaus. In Australia these are Equifax, Illion and Experion.

When a default is listed on your credit file, it can remain on your credit file for 5 years even if you have paid it.

You can sometimes negotiate to have a default removed as part of a settlement or if the information is incorrect or entered in area.

At the same time, a credit default can have serious implications on your ability to borrow money in the future.

Loans 123 may be able to assist even if have adverse credit and wish to buy a car.



Slow payments and defaults.

Whenyou fail to pay credit cards and loans on time, this causes a negative impact on your credit file and credit score.

Your repayment and default history make up an important part of your credit file/report and credit score.

Slow payments and defaults will result in a reduced credit score and this will affect, not only your chance of getting a loan but your interest rate and other terms as you will be viewed as a high-risk client.

Another downside of slow payments is that some lenders will charge default interest rates that are higher than your current loan rates.

Check your credit file and credit score for free at www.freecreditreort.com.au