With Christmas shopping now over many people forget or bypass their normal

Myths About Late Payments

payment obligations.Often having paid many bills late in order to gettheir gifts and party outfits.Many believe that being late is okay.

However, paying your bills late can have a

lasting effect on your credit and finances.

I recently came across this article myths about

late payments.

Yahoo Finance – 5 Myths About Late Payments & Your FICO Scores

"Payment history is a vital part of a consumer’s credit scores, so we debunk five of the

most pervasive myths about late payments."

One late payment is one of the myths about late payments.

Any late payment effects your credit score.

Each late payment stays on your credit for seven (7) years.

If you have never been late before you can ask your creditor to remove the late payment

from your credit report.

Seven year myth is the second of the myths about late payments.

The more recent the late payment the more it will affect your credit score.

The older the late payment the less effect it will have on your credit score.

Thirty day myth is the third of the myths about late payments.

Creditors have the right to report payments that are only one day late.

Many however wait until the payment is actually 30 days late.

You may still incur a late fee even if the late payment is not reported to the credit bureau.

If you have not been late in the last 12 months you can ask that a creditor waive the late

fee, or even not report it the credit bureaus.

I wouldn't ask if you have been late in the last 24 months and already have requested that

the late fee not be applied.

Late is late is another of the myths about late payments.

A 90 or 120 day payment is more severe than a 30 days late.

The longer you go without paying your bill the more it affects your credit score.

Many people avoid talking to their creditors when they are late.

It is best to call and make arrangements or to simply inform the creditor of your current

situation.

If you are late due to job loss, divorce, or death many creditors will work with you until

you find gainful employment.

The number of late payments is the last of the myths about late payments.

Multiple late payments will have more affect on your credit than one late payment.

Remember that your payment history is 35% of your credit score.

Even if you get off track and have a late payment its better to go ahead and make your

payment than to wait.

No matter if it is a single late payment or multiple late payments each of these will affect

your credit.

The sooner you get back to paying your bills on time the sooner your credit score can

recover.

Are you going to rely on myths about late payments when you are paying your bills???

Your Financial Coach,

Renee Lawson