What are the different categories of late payments and how does your credit score consider late payments?
Your credit score considers late payment using these general criteria; how recent the late payments are, how severe the late payments are, and how frequently the late payments occur. So this means that a recent late payment could be more damaging to your credit score than a number of late payments that happened a long time ago.
You may have noticed on your credit report that late payments are detailed as to how long the payment was late. Normally, creditors report late payments in one of these categories: 30-days late, 60-days late, 90-days late, 120-days late, 150-days late, or charge off Of course a 90-day late is worse than a 30-day late. If you continue not to pay your dept and your creditor either charges it off or sends it to a collection agency, it is considered a significant event with regard to your score and will likely have a severe negative impact.
It’s important to always stay on time with your payments; your history of payments is one of the largest factors in your credit score.. Before being late for any payment, we recommend that you reach out to your creditor; the creditor may be willing to work something out with you that you both can live with. Again, late payments hurt, but you can get current with them by paying them off. For a free consultation visit us here http://www.360creditconsulting.com/credit-repair-consultation/