Your creditors can report to the credit bureaus anytime you are 30, 60, or 90 days late on your payment. It doesn’t matter the reason you were late or if the credit bureau made an error, you will be penalized for having it on your credit report.
A 30-day late payment can drop your score up to 110 points, raise an interest rate on a car loan nearly 3%, and make you pay $95 more a month for a home mortgage. That is just one 30-day late payment. Think about being 60 or 90 days late would do to your credit report.
There is something you can do about it though.
Contact the Creditor – If you are lucky, sometimes this is all it takes. Explain why you were late and if you have had a good payment history with them in the past, they might give you a freebie. Doesn’t hurt to ask.
Dispute the Late Payment – This involves contacting the credit bureaus and getting them to verify the account. You can do this yourself or hire an expert to do it for you. Either way, get it done before it ends up costing you more money.
It is imperative that you don’t let unfortunate circumstances, one mistake or credit reporting errors cause you to pay more in the long run. Use these resources given to make an informed decision to get your credit score up. If you’re not convinced yet, let me breakdown what FICO released concerning your credit report.
A 30-Day Late Payment Will Cause:
If your credit score is 680
If your credit score is 780
So as you can see it hurts no matter what your score is. But it hurts you even more if you have a higher credit score and have been paying everything on time, except for this one mistake. So whether your fault, the creditors, or the credit bureaus, don’t let them damage your credit anymore.