Late payments do affect your credit rating but what most consumers don’t know is that it also depends on how late your payment is made to the creditor. To start with, late payments that are made to creditors but are no later than 30 days late are not reported to the credit bureaus. So for instance, you have a credit card payment that is due on the 1st of January and you are not able to make the payment until the 27th of January.
This is considered late with the credit card company but will not show up on your credit report as a late payment. It will not show on your credit report until you are more than 30days late and it will show as a “1-time 30day late payment”.
These types of late payments usually affect your score and can have a lasting effect for about 12 months. The same goes with other types of accounts such as car payments, mortgage payments, personal loans as well as secured loans.
Even if the payment is a couple of days late, the best thing is to try and make sure it does not go beyond the 30-day point. It is also important to note that these late payments can cause your interest rate to rise on your credit cards.
This may be the case even if you are only 1 day late as opposed to 20 days late. This will vary depending on the credit card company you are dealing with. You want to check with the your creditor to find out their exact policy.
By: Tony Banks
Posts Tagged ‘12 Months’
Credit Repair Fast
February 10th, 2010
When you have bad credit and a low credit score, the faster you can fix the problem, the faster your life gets back to normal. Rather than just accepting your status, learn what you can do to understand the credit process and what you can do to track and repair problems that may appear on your credit report.
The place to begin is with your credit reports. The idea behind looking at a current credit report is to see exactly what is being reported about you. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion, provide you with a free copy of your credit report once every 12 months, if you ask for it. To order your free report, visit Annual Credit Report dot com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form.
1. In order to make credit repair fast, you need to be aggressive and diligent in your efforts. Make a list of mistakes and errors you find, then compose a letter to the bureau reporting the error, and asking them to remove it from your files. Send all correspondence by certified mail, and ask for a signed receipt.
Some credit repair companies will even send a dispute letter knowing that the item they are disputing is accurate. If the bureau doesn’t verify the item, or can’t do it within the 30 days allowed by law, the bureau has to remove those items immediately. The result is a big, and fast, positive pop to someone’s credit score.
2. No matter how horrible your credit picture is today, credit bureaus and lenders are most concerned about your latest credit management habits. Be sure you make all payments on time, and preferably early. Never, never, never ever make a payment late. This is critical if you want to rebuild your credit.
3. If you have any outstanding collection accounts, you can probably work out some kind of payment arrangement with them, either a discounted payoff in full at anywhere from 30
