How Late Payments Affect Your Credit Score

In today’s world of large purchases and electronic purchasing we use credit to do a great deal of our business. Whether you’re applying for a home loan or a credit card having a good credit score is your ticket to obtaining a home loan in the Cedar Rapids or surrounding  area.

Your credit score is incredibly important and can directly affect your way of life.

There are some definite ways to maintain your credit score and therefore your way of life.

One important way is by paying your bills on time consistently.

According to a recent article on a single late payment can decrease your credit score by 100 points or more! This is particularly true of those with a higher credit score. For those with a lower score and a number of negative items already on their credit it won’t make as big of a difference, but it certainly won’t help matters either.

According to, the more recent the missed payment, the more damaging it is to your credit score. So even if your credit is already in the tank it’s not advisable to make regular late payments if you’re trying revive it.

Creditors cannot report a late payment on your credit until it is more than 30 days late. If this is an occasional event it won’t be so devastating, but regular late payments and late payments over 90 days will have a big impact on your credit score.

The bottom line: Payment history accounts for 35% of your credit score! If at all possible it’s best to make your payments on time. Your credit score can impact your job prospects, ability to obtain housing (purchases and rentals) as well as your ability to make large purchases without big down payments.

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