Being delinquent is where your payment is not received on the due date, and is therefore considered delinquent. Being late on your payments can drop your credit score by 50 points or more because your payment history makes up 35% of your credit score. To prevent you from getting behind, try applying some of the following helpful strategies.
Delinquent payment secret one: How can I avoid being delinquent on my account?
- Have your online credit card company send you an automatic reminder.
- Set your calendar up to remind you seven days before your payments are due.
- Set your calendar up on your phone to alert you seven days before your due date.
- Set up automatic payment with your online banking company.
- Set up automatic withdraws through your credit card or financial company.
- If you follow these simple techniques, you will never miss a payment again.
Delinquent payment secret two: What if I’m only a few days late on my payment?
Some credit card companies and lending institutions have grace periods, so if you are a few days late, you won’t be charged a fee or be reported to the credit bureau. Even so, be warned, a lot of credit card companies do not have grace periods, so if you are behind one day, you will get hit with a high late fee. If you are in a special program that requires timely payments, this may ruin your chance to receive a credit increase. Check with your credit card company regarding their policies on grace periods.
Delinquent payment secret three: What if I was 30 days late one or two times?
You will severely damage your credit score because your payment history counts for 35% of your credit score. Fico looks at the most recent payment activity. So if you were late two times within two years, your score will take a serious hit. According to Fico, negative information past two years does not count as much.
As you can see being delinquent on your account could cost you money and a serious drop of your credit score. So please be on time with your payments because one 30 day late indication could drop your score by 50 points.
