Late payments showing on your Capitalise credit profile can affect your credit score. These reports typically come from lenders, suppliers, or creditors. Here are the most common reasons:
1. Actual late payments:
Missed due dates: payments made after the agreed date may be flagged, even if only a few days late.
Insufficient funds: if a payment was attempted but failed due to insufficient funds in your account, this can be recorded as a late or missed payment.
2. Reporting discrepancies
Incorrect payment terms: misunderstandings around payment due dates can cause disputes over what qualifies as "late." Ensure you have a clear written agreement on payment schedules and due dates.
Timing differences: delays between when you pay and when it's reported to Experian can result in short-term reporting mismatches. If you recently made a payment that was slightly past the due date, it might still appear as late.
Creditor error: in rare cases, the creditor or supplier might have made an error in recording or reporting your payment. This could include incorrectly marking a timely payment as late.
3. Disputes and unresolved issues:
Withheld payment due to dispute: if you have a legitimate dispute with a supplier or creditor regarding goods or services, and you've withheld payment as a result, this could be reported as a late payment if not handled correctly according to the agreed dispute resolution process.
Unresolved balances: even small unpaid amounts can be flagged and continuously reported until resolved.