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Mark Bower

Mark founded MoneyMaxim in 2008, with the aim of delivering an impartial and independent service. Mark is a regular money saving expert in the press and writes regular news and articles for the MoneyMaxim news pages sharing his views on banking, personal insurance and the utilities (gas, electricity, mobile and home phones, broadband and pay TV) market with customers.

Lack of funds is the reason that one in five to miss payments on their credit report

Credit payment problems revealed in survey, showing the pressures UK householders are under when it comes to funding loan repayments.

The economic pressures many households are under is graphically illustrated by the statistic that almost one in five Britons have skipped repayments because they were unable to able to afford them, according to the latest independent research commissioned by Experian CreditExpert.1

In all, more than a quarter of Britons have missed payments currently listed on their credit report due to simply ‘forgetting' to make repayments on time.

Furthermore, respondents were quizzed about their most recent missed payment, almost half said it occurred in the past 12 months whilst a quarter said it was more than one year but less than two years ago. 2

Financial pressure was also evident regarding the level of debt repayments. Of those surveyed 14% said they only ever repay the minimum requirement, meaning they are highly likely to be rolling up a significant level of interest. It is also an indicator used by some lenders that a borrower is already under financial pressure.

Around a third of the respondents said that money is a constant worry from them – with half of those ‘worriers' saying they dread opening their credit card statements.

Managing Director at Experian Consumer Services, UK & Ireland, Peter Turner, said: "Missing a credit repayment can happen to everyone. However, it is important to understand the impact of these actions on long term credit worthiness so that it doesn't impact on us getting the things we want later in life.”

"The first step towards taking control of your finances – is understanding them. A Experian credit report* will give you an invaluable insight into your credit management over the last six years, highlighting the positive and the negative influences affecting your credit rating.”

"If you do find that you are in financial difficulty and struggling to make ends meet, the most important thing is to deal with it as soon as possible. Speak to advice charities and talk to lenders, and ask for help. It's very easy to bury your head in the sand and miss payments or let balances build up. But in so doing, you may find that you are storing up problems for the future which could leave you without access to affordable credit when you need it.”

Using a credit report to understand how lenders might view you makes sense as it enables you to take actions which will positively impact your report, improve your credit score, and improve your chances of getting a loan, credit card or mortgage in the future.

Whilst a credit report looks back at least six years, it is true to say that the most recent history is deemed to be the most important so action taken now will have a positive consequence.

Credit reports are effectively an overview of your borrowing patterns showing the credit arrangements you have entered into and the repayments you have made – covering everything from your credit card bill, to you mobile phone account to loans or mortgages you may have.

Get a free Credit Report* from Experian today

___|\___|\___|\___|\___|\___|\___|\___|\___|\___|\___|\___|\___|_ 1 Research was carried out online by eDigitalResearch on behalf of Experian CreditExpert among a representative panel of 3017 UK adults in January/February of 2013.

There are 48,844,900 UK adults (ONS). 28% of adults have a missed payment in the last six years due to forgetfulness and 19% due to not being able to afford to make one.

Therefore, at least 13,676,572 Britons have at least one missed payment on their record.

2 Britons most recent missed repayment:

| Last missed repayment | % | || | Up to 12 months ago | 45 | | 12 months – 2 years ago | 24 | | 3-4 years ago | 13 | | 5-6 years ago | 6 |

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