Postal strike to hit credit ratings?
Sep 29th, 2009 | By Les Sheppard | Category: MoneyWelcome back! Have you made sure you never miss a new property? Subscribe to updates with your best email address in the sidebar to the right.You see everything new at least 48 hours before the crowd!
Thousands of consumers could see their credit rating take a hit due to the ongoing Royal Mail strikes.
Industrial action by p
ostal workers across much of the UK has led to delays of up to 10 days, with reports of huge backlogs at sorting offices. On top of the general inconvenience, there’s a real danger that if payments are late in getting to credit card companies, consumers will be hit with late payment charges, and worse still, see their credit rating damaged.
Customers that typically pay their credit card bill by cheque through the post face the biggest risk of being hit with that double penalty.
The amount of time that customers are told to allow when making payment by post varies from lender to lender, but Barclaycard for example, advises its customers to ensure that cheques arrive just 4 working days before the payment due date. It’s easy to see how just a small delay to the post could see the payment being received late.
Even those of us who pay bills via online banking or in-branch are at risk, due to the window between receiving a statement and having to pay being dramatically reduced by the strikes.
With lenders extra-picky about which customers they accept, it’s vital to protect your credit rating. You should ensure that you have a Direct Debit in place to cover at the least the minimum payment, and should also regularly check your credit file online to ensure that your own rating hasn’t been tarnished.
You can monitor your credit report based on data from all three UK credit reference agencies for just £17.55 a quarter – that’s less than £2 per agency per month.
Check your credit files online
Related posts:
