Credit Diva Blog

How Does a Late Payment Affect Your Credit Score?

  • By Credit Diva of Dallas
  • 15 Apr, 2021
  • 0 Comments

Having a credit card or loan requires careful budgeting and planning, so you can get it paid off responsibly. Installment loans, such as car loans, have a set amount you pay every month. This amount is decided in advance of you accepting the loan terms. A credit car loan is different because the monthly payment varies based on your balance. Some credit card lenders use a percentage of what you owe plus the monthly finance charge. As the balance goes up or down, the minimum payment due will change also. With a credit card payment, you can always pay more than the minimum amount but not less.

Whether it’s an installment loan or a credit card loan, due dates must be adhered to. However, sometimes circumstances may occur, and you end up being late making your payment. Some of these reasons could be anything from you forgetting the date to you not having the funds at the moment. The question is, how does a late payment affect your credit score? Let’s take a look.

Red credit cardHow Does a Late Payment Affect Your Credit Score?

The effects of a late payment on your credit score can be devastating and long-lasting for some people; others may be able to get by with minimal issues. It all depends on your current credit situation and history. According to FICO, the score will impact people differently based on their previous risk assessment. If they already have a lower score and are considered riskier, one late payment may not harm them as much as someone who has a higher score with no delinquencies. Also, if someone doesn’t have many accounts or a long history, they will be affected more than someone who does.

You may see anywhere from a 30 to 65-point drop when missing a payment by 30 days. If you miss for more than that, the score is further harmed.

How Long Will a Late Payment Affect Your Credit Score?

The appearance of a missed payment will stay on your credit report for seven years. However, with good habits, you can bring the score back up sooner than that. Paying down your loans so your credit utilization rate is decreased is one way to do that.

Writing a checkTips for Making Payments On Time

The key to keeping your credit score in good shape is to be sure to make all your payments on time. There are some tips you can use to help you accomplish this goal, such as:

  • Setting up automatic payments — most loan payments have an option for you to make automatic payments. You will have to create an online account or register for online access. Once you’ve accessed your account, go to the payment section and select the automatic payment option. You’ll need to supply your bank routing number, so be prepared with the information.
  • Setting reminders — If you don’t want to set up automatic payments, you can set yourself a reminder on your phone. Most smartphones have reminders in the calendar app.
  • Paying early — Another option is to pay as soon as you get the bill. Even though this will be paying early, it will ensure you get it there without being late.

Get in Touch With Credit Diva of Dallas

Having a late payment on your credit score can cause it to drop. While you can't go back in time to reverse it, you can make moves to improve your credit score and your financial habits in the future.

Take charge of your finances by getting in touch with Credit Diva of Dallas. Our credit repair program will assist you in taking control of your finances in a proactive way. With credit repair, you can secure the best interest rates. Get in touch with Credit Diva today for more information.

Contact Us

How Budgeting the Best Credit Repair in Dallas TX Helps Boost Your Credit Score!

By Credit Diva of Dallas 25 Jun, 2021 0 Comments

What can you do to maintain a good credit score and the benefits that come with it? A better credit score helps you now and in the future when you're ready to retire--and beyond!

If you've never

Continue reading

Tips to Manage Credit Cards and Pay Bills On Time

By Credit Diva of Dallas 18 Jun, 2021 0 Comments

Credit card management requires the right strategy to use cards smartly and boost your credit score. They can be a great financial tool, but they can also lead to excessive spending and bad credit

Continue reading

4 Financial Moves That You Can Enjoy When You "Fix My Credit!"

By Credit Diva of Dallas 11 Jun, 2021 0 Comments

Are you wondering, “should I fix my credit score?” That 3-digit score can make or break your retirement and many financial decisions in between!

A high credit score doesn't happen without working

Continue reading

Keeping a Good Credit Score through Retirement: 4 Useful Tips From Credit Repair Dallas

By Credit Diva of Dallas 03 Jun, 2021 0 Comments

Should you heed advice from the best credit repair Dallas offers as you grow older or at any point in your retirement? Maintaining good credit is critical at any age—even through retirement. 

Continue reading