Ways On How Late Payments Hurt Your Credit Score

It seems that, nowadays, many people are becoming more aware of how their credit ratings can affect their livelihood

. However, what you may not realize is how late payments hurt your credit score in the end, especially if it's something that's ongoing.

Although some creditors will give you a little bit of leeway before reporting your delinquent payments, in some cases, it's said that over 35% of your overall credit score may be affected by bills that aren't not paid on time. Depending on the creditor or company, many base this off a 30-day cycle and will report said late payments to at least one of the three main credit bureaus Equifax, Trans Union and Experian. Payments that go unpaid for up to 60 or 90 days may actually see further action taken.

While infrequent cases of delinquent payments may not damage your ratings much, it is important to remember that marks such as this on your report can last up to seven years. Therefore, it's key to make sure that those infrequent late paying doesn't become more frequent later on; otherwise, you may find that your score drops significantly, making it hard for you to obtain credit-based benefits such as purchasing a home, getting a car, renting out a residence and so forth.

In order to ensure that your ratings aren't affected by anything running late, there are methods that you can go by. For example, if you find that you're running late on a bill, you can often times contact the company or creditor to ask for an extension or possibly pay part of the fee with promises to pay the rest later. While it's good not to overdo this, you are at least letting them know that you are struggling but plan to pay when you can.

If you happen to be already suffering from credit issues, it's better to start working on improving it now, rather than later. Set plans for yourself or goals to make sure that things are paid on time, even cutting down on expenses that may not be necessary, but could be burdening your overall budget.

Try to keep up-to-date with changes that specific creditors, companies, banks and so on tend to make. Often times, many people tend to fall behind the times of different fees that have been put into place by these places, generally finding themselves exceeding even what they previously owed and potentially winding themselves into a downward spiral if one isn't careful.

Keeping on top of your reports and credit scores is highly important. Bad credit can make life harder, while good credit can pay off in many different ways and even save you money in the long run. While it's important to be aware of how late payments hurt your credit score, if you find that you aren't able to pay things on time, this may be an indication that you could be possibly overspending anyway and may need to rethink your general spending habits, making sure that you stay organized and within a budget range that you can afford.

by: Tim Van Dalsum

POST COMMENT

Who Offers the Best Mortgage Loans For Buyers With Good Credit? Credit Card Debt Consolidation to Reduce Your Payments an You Negotiate Credit Card Debt Reduction? The Basics of Credit Card Shock Bad Credit Loans : To Ensure Finance Despite Past Mistakes With A Fast Bad Credit Loan, Get Money When You Need It Most Short Term Loans No Credit Check - Overcome From Your Fiscal Problems Loans For Bad Credit A Companion For You! Low Credit Score Unsecured Loans Have Payday Unsecured Loan Loans For Bad Debt - Fastest Payday No Credit Loan Unsecured Credit - To Finance Your Needs Bad Credit Loans - Change Your Fiscal Status Now! No telecheck loans-Get the loan without credit check