Monday, November 12, 2012

Late Payment Affect Your Credit Score

Late Payment Affect Credit Score

Let’s say you created one of those big no-no credit ranking mistakes. You went out of town on vacation for a week, came at home and realized you totally didn't remember to pay your bank card invoice. It happens all of enough time.

Chances are you are okay. The scariest thing that may occur is you have to pay a delayed fee, but more than likely the lender will not review your one-time delayed to the money ranking reporting agencies. Most lenders and creditors will not review bad repayment record until you are 90 days delayed, and if they do not review it, it does not end up on your credit ranking rating. Since your credit ranking rating is determined by the information on your credit ranking rating, you are in the clear.

But what if they do and that delayed ends up on your credit ranking rating. Sadly, if you have an otherwise a favorable credit ranking score rating, this will affect you the most. It could knock 100 points off your credit ranking rating – ouch! Late expenses by individuals who already have a crummy credit ranking rating will not get dinged nearly as bad.

This may actually not be entirely true though. The way FICO is determining credit ranking ratings going forward now gives some forgiveness to individuals who created that one-time mistake, but will further punish individuals who have a record of not spending their expenses.

The best solution to make sure this does not occur is to set up automated invoice spending. That way, no matter what, your expenses get paid.

If, however, you have a record of making delayed expenses, you are in a bit more trouble. You will wan to get a copy of your credit ranking rating and take some of the steps to increase your credit ranking rating, which you can do completely on your own.


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