Financially Tough

Getting Tough With Your Money

Are Late Payments Killing Your Credit Score?

Are you paying your credit cards or bills late every month.  Stop!   This could be on of the single worse things you could be doing  for your credit score and credit standing.

First, late payments are going to cost you a lot of extra money.  First, there is always going to a late payment fee accessed to your account.  This is free money to your accounts.  It also will be pretty expensive.  This fees have a wide range and will be just added onto your bill.

Second, late payments could cause your interest rates to rise on your credit cards.  Credit card accounts look over your credit report frequently and if there are late payments, they can raise your interest rates.  This is even true if a late payment is made to one account, another account can see and raise your rates.

Last, late payments are going to stay with you for awhile.  These will be on your credit report for a minimum of seven years.  Ouch.  So they will have a lasting effect on your credit.

So if you are presently late with your accounts, you need to do anything to get current.  Then you need to setup a budget and start paying on time.  No excuses.

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Tags: bad credit, credit history, Late Payments
Posted in Credit Score