You probably already know that if you pay your bills late, your credit scores will suffer. However did you know that, according to Credit.com a single 90-day late payment can be as damaging as a bankruptcy filing, a tax lien, a collection, a judgment, or a repossession? It doesn’t matter if you’re late paying a $50 credit card bill or a $2,000 mortgage payment. It shows that you were 90 days behind in paying your due balance.
Being punctual with your payments counts for about 35% of your overall credit score. Paying bills on time is generally the single most important contributor to a good credit score. WHY? Well, lenders look at trends and when you are late on any bill, for any length of time, they see that as a possible sign of future non-payment of debt. It is always viewed negatively by lenders. Did you also know that often times the late payments stay on your credit report for 7 years from the date of the initial missed payment?
The interesting thing is that a 30 or 60 day late payment will usually damage your credit score only while it is being reported as currently past due. They usually don’t cause lasting damage to your credit score after this period passes unless you make 30 or 60 day late payments on a regular basis.
One way to improve your credit then, if you only have a few 30-60 day late payments listed on your credit report, is to contact your creditors by phone and ask them to remove it. Explain the reason and ask them nicely to remove it. Follow the conversation with a written request to have the isolated late payments removed from your reports. However, if you have consistently been making late payments, it will probably take a little more effort.
If you are unable to get the creditor to remove the late payment history from your reports, there are a few other ways to do it. One of the best ways is to dispute them with the credit bureaus. If you have more than small problems on your credit report, we have a great arrangement with a credit repair company.
If your credit has been stopping you from purchasing a home, we have great news for you! When you use this credit repair company and work through the program successfully, one of our favorite lenders will actually REIMBURSE YOU FOR ALL THE COSTS when you use this lender and the Veenstra Team to purchase a home. Call us at 269-350-5514 and we will explain all the details. There is no cost or obligation if you call us.