How Does Making a Payment Late Affect My Score

When a bill is overlooked it is reported to credit bureaus and many worry that this will destroy their score. The truth is, forgetting to make a payment or making it late is unlikely to tank your score, for many reasons, including payments for Islamic financing. One late fee doesn’t mean that your credit score is ruined.   Simply paying a fee 5 minutes later then it is due, is technically late. Most creditors have an automatic impose for a fee when the payment date has passed without it being posted on your account.  If you generally pay on time, then you have a very high chance of getting a credit card issuer to reserve late fees.   If you pay a few days late, you generally don’t have to worry about a creditor reporting a payment a few days late.  Credit bureaus generally don’t consider a payment late until it is 30 days past due. You may still receive a late fee but your credit score should be fine.   The standard for reporting late payments to credit bureaus are from the Credit Reporting Resource Guide, which is a standardized way to make creditors comply with the federal law. Your payment isn’t reported late until 30 days past the due date. You may receive calls and mail about the overdue payments but in terms of your credit score and credit bureaus, your account is “current and in good standing”. Being reported before that time period, violates the federal law.   Turning in a late payment is a matter that should be dealt with ASAP. Paying a loan 30 days late has its consequences but the longer it takes to make the payment, like 60 days, only comes with more burdens.   That being said, there are always ways to prevent being late in the first place. It will help save you all the money you spend on late fees and prevent you from being stressed about the matter. One strategy is to make a payment schedule that works for you. You are generally allowed to select your own due date so you can make either pay them all at the same time or have them staggered at different parts of the month.  A second strategy is to set up text alerts reminding you of upcoming payments. You can also set up reminders through email or on your mobile calendar. If just the thought of the payment itself slips your mind, consider automatic payments. But only do this knowing you will have enough money in your account to prevent overdraft fees. It is good to stay motivated about paying on time but it’s not good to beat yourself over a paying a little late. To have a good credit score, it is best to establish good habits. Be sure to pay your bills on time, keep your credit card balance low, and monitor your credit reports for mistakes.