Late Payment: Questions & Answers

Late Payment: Questions & Answers

Late Payment: Questions & Answers

Late payment… We’ve all been there, and we all did that! Yes, late payments are negative for your credit score, but hey, it happens! In fact, payment history is the most important factor of your credit rating, making up the 35% of your overall score. In this article we’ll answer few common questions regarding how a late payment can affect your credit score. Read how you can remove it from your credit report, and more! Simply put, everything you want to know for late payments is listed below. Ready, set, scroll! 

What Is a Late Payment? 

As late payment we consider the past due payments a borrower does towards his credit cards, mortgages, and/or other loans. 

When They Report a Payment as Late? 

In order the credit bureaus to mark a payment as delayed, it has to be 30 days past due. So, don’t worry if you’re just few days late, as it’s not going to be reported. However, this doesn’t mean that late payments of any kind should assemble your payment pattern. Remember this: 30 days delay are bad, but at the same time they are better than 60 days or more. The sooner you can cover the payment, the sooner you can fix the credit penalties. 

How Does a Late Payment Affect Your Credit Score? 

Even one single late payment, can cause your score to drop and make creditors and lenders less propitious towards your application. However, one small slip in an otherwise spotless report will not be that bad, you may think. The way lenders evaluate the information from your credit report varies, but a delayed payment can cost you about 100 points. The better your credit rating is, the more you will be affected. 

How Long Does a Late Payment stay on the Credit Report? 

Well, you’re not going to like this! One late payment, will stay listed on your report for up to seven years. Don’t panic, you’re not doomed and your financial future is not ruined, come on! The problem begins with multiple late payments, or even worse when the account is charged off or sent to collections. 

How Can I Remove a Late Payment from My Credit Report? 

There are roughly two kinds of late payments. The one you’re innocent for, and the one you have to plead guilty for. In simple words, it can either be a credit error that you should dispute, or you’re actually late and in fault. You can remove late payments if you try to make a goodwill adjustment with lenders or creditors. If that fails or you simply want to save your time, you can contact a credit repair company. Read our relevant article: “Credit Repair Company: Why You Need One.” 

A reputable credit repair company like Baby Boomers Financial can help you to correct or remove negative factors from your credit report. Contact us today or get benefit from our free credit review right here.