Oops! I missed my monthly line of credit payment

I forgot to make the payment on my line of credit last month, and now I’m toying with the idea of setting up automatic bill payments from my chequing account.

 
If you're interested in the pros and cons, read these stories:

How automatic payments make life easier
Automated bill payments not always a good idea

My other problem is that depending on when my bi-weekly pay lands in my account and how much I’m paying my kids’ nanny in a given week, the balance in my account can fluctuate.

It’s the first time I’ve forgotten to pay my line of credit. My mind has been elsewhere - on de-cluttering and painting my condo to get it ready to sell.

My bank  called to ask about the missing payment and I was genuinely embarrassed. The customer service rep told me my payment record was very good and an occasional oversight is understandable.

She said that the bank would not report this to the credit bureau. Since my husband and I plan on applying for a bigger mortgage in the coming weeks, a blot on my credit report right now could be a disaster because it could lower my credit score.

I’m also lucky that it wasn’t a credit card. In some cases, missing or making a late payment on a credit card can mean a increase in the interest rate.

According to the Financial Consumers Agency of Canada, payment of utility bills, such as phone, cable and electricity is not recorded in your credit report, some cellphone companies may report late payments to the credit-reporting agencies.

The bank rep asked whether I would be able to make a double payment by the end of this month and I assured her that I would. I will be sure to do it at least a week early.

Also read:

Roseman: Here's the scoop on your credit score