Late payments are one of the most common negative items that appear on a credit report. Unfortunately, that means they are one of the most damaging things to people’s credit scores. A late payment can remain on your report for as long as seven years. This means if you fail to pay a small bill of a hundred dollars on time, the overall cost can be much, much more. This is because your lower credit score will result in higher interest on home and auto loans. It may even mean you won’t be able to qualify for a loan.
What You Need to Know About Late Payments
Late payments appear on your credit report as either being 30, 60, 90, or 120-plus days late. Each of these degrees of delinquency affect your credit score differently. If you are currently 30 or 60 days late, your credit report will be affected the most. If you were 30 or 60 days late in the past, but are current when your credit is checked, then it isn’t looked upon as a serious offense by credit reporting bureaus.
Time Is NOT Your Friend
Once you are 90 days late or more, it is taken more serious and it affects your credit score more. One of the main goals of the credit score is for creditors to try and predict how likely you are to be 90 days late or more on your payments. Obviously, if you have been 90-plus days late on a payment recently, then your risk of doing so again is much higher – and your score reflects this accordingly. However, even if you are already 90-plus days late on a payment, it is still a good idea to pay to avoid additional harm in the form of collections, payment plans, settlements, or repossessions.
The Effects are Clear
No matter how much you owe, late payments will affect your credit the same. To credit reporting agencies, a late payment of $50 is just as bad as a late payment of $5,000. Knowing this, if you have to make a choice between which bills you can pay, it may be wise to pay the less expensive bills first, then pay the more expensive ones as soon as you can.
Suggestions on How To Avoid Late Payments in the Future
The best way to improve your credit score is to pay bills on time. Set up automatic bill pay with your bank, or set your bills up for auto-withdrawal. Many times you can even choose the date you want to have the money taken out to pay your bills. I know it’s cliche, but budget your money. One of the keys to financial success, as well as general happiness, is to spend less than what you make. Look for ways to cut back in some areas in order to prevent late payments. Chances are you are going to have to pay the bill eventually either way – you may as well avoid late fees and the credit score hit your late payment will generate. And honestly, there does not have to be a big lifestyle change for you and your family if you cut your expenses by a few hundred dollars per month.
Read my story below (and check out the photos for proof) to see how you can remove late payments from your credit report.
Bad Credit? You’re Not Alone.
Several years ago, I went through some trials. I became unemployed when my company went out of business. My expenditures kept accumulating and I couldn’t make the payments on my bills any longer. I couldn’t keep up with the monthly payments on my maxed out credit cards and I quickly became the subject of scrutiny from collection agencies.
Things were miserable. I felt like a failure because of the non-stop harassment from people saying I owed them money. I wanted to pay them, but I just didn’t have any money to do it with. Finally I decided to file for bankruptcy in order to escape. But my credit suffered a massive blow following the bankruptcy.
I knew that bankruptcy would have an impact on my life, but I didn’t know it would be as big as it turned out to be. I couldn’t get a loan from anyone. I had trouble securing lines of credit and was denied on home and auto loans. It was tough not being approved for a loan.
Getting My Credit Back On Track
After I told a friend of mine about my issues, he suggested I check out Lexington Law. He said if anyone could help me out it would be them. I didn’t believe him at first, but I was willing to do anything to improve my credit, so I gave them a shot.
I researched them online, then gave them a call at 800-220-0084. I spoke to a credit expert who gave me a free consultation. It was nice to talk to someone who actually cared and wanted to help. I decided to sign up and am still grateful for making that decision. After only a few weeks, I was getting letters from credit reporting agencies saying negative items were being removed from my credit report. Since then, my credit scores have been improving steadily. Finally, I can get financing on the things I want to buy. Joining up with Lexington Law turned out to be a great decision for me (see below).
My credit scores have dramatically improved since there are no longer any negative accounts on my credit report. Here is a snap shot of my credit scores since I signed up with Lexington Law:
“I have to admit I was a little skeptical at first, but after seeing what you were able to do with my credit after only a few months, it is very reassuring. Thank you for everything you are doing for me and please pass on to your staff my appreciation for all of their hard work.”
— T.B., Lexington client
“Thanks for the excellent services you have provided. I would sincerely say that your organization conducted business in the utmost professional manner. I am extremely pleased with the way you worked things out for me. Thanks for the wonderful service. You and your team have a great year ahead!”
— B.P., Lexington client
You can read hundreds of client testimonials and even watch some very inspirational client video testimonials here:
Discount for Couples
Lexington Law is now offering $50 off the initial fee when you and your spouse sign up together. The discount will be applied after the second sign-up is complete.
If you’re sick of having bad credit, let the professionals at Lexington Law Firm take care of it for you. They can delete all kinds of negative items from your credit reports, including: bankruptcies, foreclosures, repossessions, charge offs, judgments, tax liens, collections, late payments and more. Call 800-220-0084 for a free consultation and a complimentary credit score or fill out the form below and a representative will call you shortly. You’ll be glad you did!