Late Payments: Yup, Just One Will Hurt Your Credit Score
Late payments may not seem to be that big of a deal.
Let’s not sugar coat this. Yes, your credit will take a hit if you’re late on just one payment. The irony is the better your credit score, the harder it will fall. One little slip-up and your credit score could take a nose dive. If you have a really high credit score you’ll take a bigger hit than someone who has a lower credit score.
The impact of a late pay or a missed payment on your credit scores varies significantly depending on individual consumers circumstances. Some of the determining factors on how a late payment will impact your score are:
Do you have a history of delinquencies or collections?
Do you have a history of delinquencies or collections?
Do you have any adverse legal issue on your credit report ?
What is the balance on the delinquent account ?
What is the length of your credit history?
The best way to avoid late payments and fees that go along with them is to be very organized and meticulous when it comes to paying your bills on time. If you have concerns about whether or not a late payment dented your credit, check your three credit reports. You can check them free of charge once a year by directly contacting the reporting agencies. To track you credit score more frequently, you should subscribe to an online service like creditkarma.com or credit.com
The bad thing about this option is if you are late on a payment, you will be burdened by late fees and increased interest rates. If you maintain your minimum payment on or before the due date, your credit score will not be hit. The shorten the amount of time you’ll be paying off the debt, try and pay more than the minimum whenever you can.
Furthermore, to help combat the over sight of late payments, there are tips to make sure you don’t miss payments in the future.
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