The Critical Impact of Late Payments

Late payments are extremely damaging to an effort to build and establish a solid credit history with positive reported payments. In my line of work, I see often that late payments by potential clients are ignored and under-estimated. The critical impact is so intrusive and damaging, often potential clients simply are unable to grasp the concept that their habits and sometimes life situations can create a stigma while boxing them into payday loans and high interest rate borrowing of all kinds.

 To stop the behavior of overlooking due dates on obligations, some kind of reminder tool is needed. I often suggest to my clients and potential clients during consultations that identifying the triggers that create the problem they are wanting correct is incredibly important. Late payments tell a story a lot of time because they signal that a larger underlying problem exists. My clients come from all types of backgrounds and our conversations lead us from small business development challenges to identity theft. Many things can happen with a creditor relationship. I find that a lot of the time, loans and credit cards are abused because the money is there. The notion that late payments due in fact affect future borrowing is quite true and lenders are often unforgiving.

 Building credit history is directly dependent on how you make payments and how much you borrow in relation to your balance history. Every account has records of balance history. If you are notorious for spending up to the limit, that will have a negative impact with the lender. Lenders have a funny way of closing high balance accounts that appear to be failing.
Here are some very important points to remember:

• Banks and Lenders charge late fees! They often are high and interest accruing in some cases.
• If your credit was strong in the beginning and your interest rate was low, that can change and a higher interest rate can be applied.
• The Rule of 30-day lates is pretty true with almost every lender. Recently Discover has introduced new programs that forgive, however, most banks don't.
• Late payments cost in scores too - often anywhere from 45 - 90 points. 

If you discover that you have a late payment on a loan that has had otherwise, strong payment history, we have a service that has been extremely successful removing late payments. It's a game-changed because in many cases the account is destroyed and no longer helps your credit scores without this option.  Be careful, be mindful and take responsibility for your credit opportunities.

We hope you find this article helpful. Let us know.

Alexis - The Credit DIVA!