Tagged: late payments
Admin Have you ever had the sinking feeling that you’ve forgotten something important? If that “rocks-in-your-stomach” feeling has ever struck you as you’re opening your credit card statement, you are not alone. According to a Financial Literacy Survey by the National Federation for Credit Counseling, 15 percent of American adults, or nearly 34 million people, were late making a credit card payment at least once. Eighteen million people (8 percent of American adults) have missed a credit card payment entirely. What’s more, 26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent. Even the very best juggler drops a bowling pin now and then. So you’ve missed a payment. What does this mean? How does one late payment affect your credit score As is the case with a number of credit-related issues, the answer is: It depends. One credit web site offers three questions that can help you gauge the possible impact of a late payment to your credit score. These questions are:
- How long ago did the most recent late payment occur?
- How severe were any late payments (30 days, 60 days, charge off, etc.)?
- How many accounts on the credit report have had late payments?
- Length of your credit history – the longer the better.
- Other delinquencies, collection references, outstanding balances or other adverse legal issues on your credit report.
- Number of other accounts that are listed as “currently paid as agreed” – the higher the better.
- Your current FICO score. If your FICO score is really high, you will endure a bigger hit for a single late payment than someone with a lower score. In this instance, the saying “the bigger they are, the harder they fall” is highly applicable.