Late Payments - Are They Really Bad For Your Credit Score?

Late Payments - Are They Really Bad For Your Credit Score? There are actually creditors who have the resources to follow up on their clients whenever a due date is missed. In some cases, you will feel inconvenienced for receiving calls from your creditors especially if there is more than one missed payment. If you do not want to receive these calls, you should make sure that you avoid making late payments. Whenever you make late payments, they are noted on you account. If you must know, each account is often reviewed every six months or so in order to determine whether or not you are eligible for credit limit increases or lower interest rate charges. If your account displayed late payment records, then you might be considered as high-risk and you will not enjoy such privileges. For habitual late payments, these could be reported to a credit bureau and you would have to face the consequences of these reports. You could be applying for something as simple as credit cards but find your applications rejected or denied. You could also be taking out a loan for a house or a car and discover that your credit score is not sufficient enough. These inconveniences could have been avoided if you have only managed your bills payment properly. Your credit score can only recover from the negative effects of these late payments after a certain period in time, usually six months of good payment history. If you really want to earn positive credit points, you should make a conscious decision to avoid these late payments and finding a management method that would fit your personality and work schedule. You could avoid late payments by simply managing your finances responsibly. Due dates are there in your bills to remind you when you are supposed to pay. If you must, sync your cellular phones, computer and handhelds so that you will be reminded each time a due date is nearing. You could also avail of auto-debit arrangement services with your local banks if you want worry-free and hassle-free bills payment. Just make sure you have sufficient funds to cover all enrolled utilities. In any case, late payments are indeed reflective of your financial life. There might be good and valid reasons why you missed your due dates but nevertheless you will suffer from the consequences like late payment charges. You would certainly not want to pay these charges each month for the simple reason that it is a waste of money. Yes, late payments are bad for your credit report but they are definitely the most manageable. Learn how to Delete Late Payments from your credit report from Credit Expert Frank Bruno: DisputeDemon.com