Late Payment Effects on Your Credit Score
The fact is there is nothing you could do to hurt your credit score more than pay your accounts late. The largest part of your credit score is your payment history to your accounts and the negative entries in this section carries the largest weight. Also, late payments effects on your credit score are lasting. Since your payment history on your credit report is seven years long, one late payment today will be with you for a long time.
The Three Ways Late Payments are Judged.
As said above eaqch late payment is looked at for three different criteria:
- Severity – This looks at how long did it take you to get current? Was it 30, 60, 90, or 120 days till you paid your over due bill? The longer it took the larger the negative effect.
- How Recent – Basically how recent was your last late payment? The longer it has been the better because your credit score puts a larger weight on anything more recent?
- Frequency – How many times are you paying late? The more it happens the more it is going to lower your score.
Is One Late Payment Going to Kill My Credit score
This answer might surprise some people, but if you have never paid late it is going to hurt more than if you always pay late. The math behind your credit score or the FICO score calculation looks for any sign of default. If you never pay late this is a red flag and can drag down your score more than if you always pay on time.
The Best Way To Late Payment Effects on Your Credit Score
It is simple: PAY ON TIME. There is no better way and your credit score will thank you for it. Also, if you are trying to rebuild your credit, dispute any late payments on your credit report older than seven years. These can be removed.
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