ICFE eNEWS #19-08 - Febuary 25th 2019
How Do Late Payments Affect My Credit Score?
By Jim Garnett, a/k/a Ask Mr.G, a member of the ICFE's Board of Educational Advisors
Late Payments And Your Credit Score
A recent survey by Experian Credit Bureau shows that more than
half of U.S. consumers have a delinquent payment on their credit
cards. More than a third of those paid late within the last
The three credit bureaus do not consider a delinquent payment a
"late payment" until it is 30 days past due. So while your
mortgage holder or credit card issuer may charge you extra for
paying three weeks after the due date, your credit score should
be none the worse for it.
But what about those payments that are more than 30 days past
due? "How much" do they affect our credit score and "for how
Just one 30-day late payment can lower your credit score by 90-110 points!
These lower scores can cost you more for loans, insurance, and
can even affect your chances of getting a job.
Therefore, it is absolutely critical to make your payments on
time because late payments impact your credit score
Whatever we do with our credit is like "making footsteps in wet
concrete." The footprints do not take long to create, but they
seem to last forever!
Specifically, bad marks, such as late payments, stay on your
credit report for 7
10 years). Even when they are paid off, the fact that they
occurred remains on your file for 7 years.
Lenders prefer to see a credit history with no bad marks on it,
but they tend to look more closely at your credit history over
the last couple of years rather than the entire seven-year span.
So, the older the late payment becomes, the less impact it has
on your present credit score.
My advice is to stay as far away from trouble as you can. Make
all of your payments promptly and don't risk lowering your
credit score by failing to pay on time.
Preview Jim's latest book, "The
Nuts and Bolts of Cash and Credit: An Encyclopedia of Financial
© Jim Garnett, The Debt Doctor
AskMrG Consulting, LLC
2216 SW 35th Street
Ankeny, IA 50023
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Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by
the late Loren Dunton (creator of the Certified Financial Planner (CFP)
designation and founder of the College for Financial Planning in Denver, CO.)
The ICFE is dedicated to helping consumers of all ages to improve their spending
practices, increase savings and use credit more wisely.
The ICFE is an
award winning, nonprofit, consumer education organization that has helped
millions of people through its financial continuing education courses programs
and resources. In addition to eight Certification courses covering identity
theft, credit files, credit repair and credit scoring, among others, it also
publishes the Do-It-Yourself Credit File correction Guide, which is updated
annually. The ICFE has distributed over one million Credit/Debit Card Warning
Labels and Credit/Debit Card Sleeves world wide.
The ICFE is a partner
with the national Jump$tart Coalition for Financial Literacy and the California
Jump$tart chapter. The ICFE staff is also active with San Diego Saves and
Military Saves, both offshoots of America Saves.
The ICFE is also an
on-line help for consumers who spend too much. ICFE's spending help was featured
in PARADE Magazine in the Intelligence Report section. The money helps and tips
are from the ICFE's Money Instruction Book, our course in personal finance.
The ICFE helps consumers and students with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
how to teach children about money. Other ICFE services include: Ask Mr. G
library, a free eNews service, and an online resource center for students,
parents and educators, plus financial education learning tools in the ICFE Book