With the current economic situation and the rising cost of everything, it’s no wonder more and more people are trying to stay afloat by getting more loans. However, this sometimes result to late payments. Most late payments on credit reports are there for legitimate reasons. It’s either you did not have the money when the payment was due or you totally forgot to make them. However, late payments leave a blemish on your credit record. The credit scoring system was developed to help creditors predict risk by determining your payment patterns. Late payments cause your credit score to dive. This tells the credit agency that you’re a high-risk customer. For these credit card companies, banks, and other lending institutions, a 90-day late payment is a good indicator how likely you are to be late on future payments. In fact --- a single 90-day late payment entry is about as damaging as a tax lien, a repossession, and even a bankruptcy. It could taint your credit record really badly and will cost you more on your future home and car loans, or any other loans for that matter. To get a good credit score, the solution is actually simple --- Pay Your Bills On Time. Payment punctuality counts for nearly 35% of your overall credit score. Being late on any bill, for any length of time, is a potential sign of future non-payment of debt and is always viewed negatively by lenders. The later you are, the more it damages your credit record. Late payments remain on your credit report for seven years. A single 30 or 60 day late payment on your credit reports will likely not have a serious effect on your credit score. In most cases, your credit score will recover when you make your payments and the account is no longer reported as currently past due. As long as you are not habitually past due on your payments, your credit score should escape from being too damaged. A 90-120-days late payment, however, is a serious negative mark on your credit report. The creditors will usually write-off the account and this will remain on your report as a charge-off for the next seven years. The good news is --- there is a way to have your late payments be deleted from your credit history and repair your record. Most people simply ask the creditor to remove the late payment from their accounts as a courtesy of doing business. If that doesn’t work, disputing these listings with the credit bureau through a letter may be another option. You may also look into signing up for a credit repair service. These processes may not be quick, and requirements may need to be met, but it is well worth the credit score you will be able to keep by not having these late payments show up in your credit report. Learn more about removing late payments on your credit report at the credit repair forums.
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