Credit card users have been warned that a single missed repayment could reflect negatively on their financial rating and lead to them needing bad credit loans in the future.
Financial services comparison site moneysupermarket.com revealed that borrowing money may be more difficult if a missed payment appears on a customer’s credit profile.
Meanwhile, the loss of interest-free balance transfer offers on credit cards could cost up to £278 over the introductory period in additional interest and fees.
Rob Kenley, head of credit cards at moneysupermarket.com, said: “Those on a zero per cent balance transfer introductory period may not be aware of the severe penalties a single missed payment can result in.”
“Failing to make a repayment could also have a negative effect on their credit profile,” he added.
Mr Kenley noted that consumers who were made to choose a bad credit loan might see their repayments become higher as a result.
The impact of a missed payment on a customer’s credit score is typically calculated based on whether the payment is 30, 60 or 90 days late, with longer delays receiving a greater penalty.
News Source: http://www.1stopfinanceshopuk.biz/