The Impact of a Late Payment on Your Credit

April 21, 2013

Penalty to different credit scoresYou’ve been busier than normal. That credit card bill has been sitting on your kitchen table for weeks now probably. You see it every morning and tell yourself you’ll pay it tonight. But night after night, you forget. You get caught up in everything else and then one day you finally decide to pay it. You open the bill up and (oh no!!!) you’re already late. The bill was due last week!

Or what if you had an unexpected expense or job loss that made money tight one month and you were able to pay the bill, but just not on time? Late payments can happen to the best of us.

How will that late payment affect your credit report and

different credit scores? How difficult will it make it for you to get credit in the future? A new Equifax Finance blog article, “

FAQ: How Long Do Late Payments Stay On My Credit Report” answers those questions.

According to the Equifax experts, negative information on your credit report (like a late payment) stay on your report for seven years (bankruptcies stay for 10 years). But positive information (like on-time and early payments) can stay forever. If you have concerns about your credit, the first thing to do is check your credit report.

The best advice is to always make sure that you make your payments on time. Set reminders in your calendar, on your phone, email account or task manager, if necessary, so that you can get notification reminders. Or, set your bills up for online auto pay, if that’d be an easier option for your lifestyle.

Visit the Equifax Finance blog to get more answers to your credit questions, as well as finance, identity theft insurance, real estate, taxes and more.

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