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Direct debit

Credit scores & reports
A payment method that automatically collects money from your bank account.

Overview

Direct debits are commonly used to pay credit cards and loans.

They help avoid missed payments and late fees.

Why it matters

  • It helps protect your payment history.
  • It reduces the risk of missed payments.
  • It supports consistent credit behaviour.

FAQs

Does a direct debit improve my credit score?

It helps you avoid missed payments, which supports your score.

What happens if a direct debit fails?

You may be charged a fee and the missed payment could be reported.

Related terms

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