Good Credit Score And Paying Late

By Author: Elliot Spalding
Total Articles: 14
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If there was one single factor that is going to hurt your credit score more than others, it is being delinquent with your accounts. Your payment history makes up 35% of your credit score which is the largest weight compared to the other factors.

Why is paying late painful for your credit score? First, late payments have serious longevity on your credit report. They will be on there for seven years. Only bankruptcies and other judgments can be on your credit report longer. The effects of late payments will be there for a long time. Second is the relationship of late payments with defaulting borrowers. Creditors have found there is a direct relationship between individuals who pay and individuals that default. Since avoiding default is one of the prime goals of all creditors, any factor that points to default will carry a large weight in your credit score.

Late payments are judged in several ways you need to understand. The first is simply how recent was your last late payment. This is because as time passes their effect will diminish. Second is how frequent are you paying late. If this is a pattern ...
... then you will kill your credit score. The last one is how late the payment is. This looks at how late you were until you made a payment. This could be classes as 30, 60, 90 or 120 days late. The longer it has been the more negative effect it will have on your credit score. 30 and 60 days late are consider less of an offense, but 90 and above will carry some serious negative effects.

There are times when something is forgotten and if this is the case make sure to pay as soon as possible. The best practice and the one used by people with a good credit score is to setup a budget. This helps you accounts for all your money and makes sure that you pay your bills on time.

If you want to improve your credit score, you should review your credit report for late payments. Anything that is over seven years old, you can dispute and have removed. This will give you an initial boost on your way to getting a good credit score.

If you are late with your accounts presently, you need to find some way to get current with your creditors. You will more than likely face penalties and possible hikes in your interest rates. This is going to cost more money than that payment in the long run.

Once again paying on time sounds simple but you need to have discipline. You need to have a monthly budget and check your credit report for any late payments. This will put you on the road to getting a good credit score.
To read more about getting a free credit score online visit Elliot's website. There you will find more information about the credit score scale