You may think that your credit scores aren’t that bad since you just make a few late payments once in a while.   You will be surprised about the effects of late payments on your credit.  The following tips will show you how bad your credit will be damaged when you make late payments.

Damage To Credit Scores From Late Payments:

Your Credit Scores:

  • Paying your bills late can lower credit scores by as much as 100 points.
  • Creditors use 750 as a bench mark for credit scores.
  • If your credit scores are above 750, your are graded as a good risk.
  • Credit scores above 750 would be considered a good credit score.
  • A credit score below 750 is considered a bad risk.
  • If you are close to 750 and make a few late payments, you move yourself from good risk to bad risk.
  • To restore your good risk standing you may need some credit repair help.
  • Credit repair services can help you build your credit scores back up if you have a credit score below 750.

Paying On Time Helps Improve Your Credit Scores

  • Pay your rent or mortgage payment on time.
  • Make all other loan payments on time; this could be your auto and your student loans.
  • Pay your utilities on time, they are also used in the credit score calculation.
  • Cell phone payments are another payment often overlooked as important in credit score calculations.
  • Save yourself the trouble of needing debt management or credit repair help; it’s easier to just pay all of your bills on time.

Late Payments Made Over 90 Days

  • Tips To Improve Your Credit Scores|Late PaymentsIf you  pay your bills over 90 days late,  just once,  the creditor marks your account as delinquent, sends it to collections and writes off your account.
  • A write off or sometimes called a charge-off  has a big negative affect on your credit score….7 years negative.
  • Charge-offs stay on your credit report for 7 years.
  • Seven years is a very long time when you are applying for auto loans and mortgages and maybe student loans for your children.       Seven years is a long time to be denied, declined and not qualify.
  • Pay your bills on time to avoid the damage to your credit by late pays.
  • It just takes one payment made over 90 days late to damage your credit.

Late Payments Over 60 Days

  • If you pay your bills over 60 days late just one time, you will damage your credit score temporarily.
  • But keep it up and continue to always pay late and you will permanently put a black mark on your credit score.
  • Pay on time to avoid credit repair.

Late Payments Over 30 Days

  • A  payment made over 30 days late just once, is just like the 60 day late pay.
  • Just one time late over 30 days will damage your credit scores temporarily.
  • But if you repeatedly pay over 30 days late, you will permanently damage your credit reports.
  • Pay on time to avoid credit repair.

The damage from late payments to your credit scores can be devastating.   Lenders, credit card companies, insurance companies, and even employers look at your credit reports before doing business with you or hiring you.  Credit reporting agencies also evaluate you based on your credit scores.

If creditors and employers are not satisfied with the credit scores on your credit reports they can deny your loan applications and charge you more for services rendered or decline your job application.

But sometimes if they see that you are making an effort to get credit repair help, they may be a little more accommodating.

If your late payments result in poor credit reports, work on getting credit repair help.   Credit damage can have a long-lasting effect your future, take steps to make sure that doesn’t happen to you.