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Credit Repair & Bad Debt Information
 Does Bad Debt Have you Buried? Find out more about these bad debts. Here we have information on what collections, late payments, judgments, liens, foreclosure, bankruptcy, charge off and other negative credit has on your credit scores and credit reports. Information On Late Payments This may come as a shock to you but late payments showing on your credit file can drastically reduce your credit scores. Most individuals don't think a late payment is all that bad but let me explain what happens and why: Most creditors report late payments when the account is late. An account would be considered late if the creditor does not get your payment before the due date listed on your statement. The way the rules read a late payment would have to be reported when it was thirty days late but this is not how all your creditors report late payments. Some creditors will report your payment late if you are ONE day past the due date and it doesn't show as just ONE DAY late it shows as thirty days late. We feel this is an unfair practice since the credit bureaus do not distinguish between a day late and thirty days late so you get the same bad mark on your credit reports. A new late payment on any account is bad. A late payment that is older gets less negative but in order to keep your credit scores high you must make sure that all your payments are made on time or before time. If you slip through and somehow pay a payment late you can call the company and usually get them to remove one as long as you have not paid the account late prior to that particular late payment. "Creditors call this forgiving you a late payment". Late payments made on a Mortgage or Auto Loan are absolutely taboo. No matter what ... you should never pay these two types of accounts late. Having late payments show up on a mortgage loan can get you denied a mortgage or refinancing and if you pay your car loans late you can get denied a car loan. Paying any account late is bad and it shows negatively on your credit reports causing your credit scores to be low and your interest rates to be high. One new trick the credit card companies have started is to raise your interest rate on your credit cards simply because they find a late payment ANYWHERE in your credit file. This is totally ridiculous but it happens every day and when you apply and get these credit cards you are allowing them to do this because they put it in the fine print that no one reads. One late payment can cost you as much as 50 points if it is a brand new one and if you are cleaning up your reports it could set you back to square one and make all the progress made in the clean up of your reports useless. When you are ready to clean up your reports you must also be ready to control your payments to creditors and keep them paid on time. The lower the rating number the better the account is, for example: an "R1" or an "I1" is the best score. The "R" means revolving account and the "I" means Installment account. So a "1" is the best rating. Your rating is based on a line of 1 - 9 with nine being the worst and includes foreclosures, repossessions, charge offs etc. Late payments are rated as such: 30 days late is a "2", 60 days late is a "3", 90 days late is a "4" once you go over ninety days late you get the same negative rating as a collection which is a "5". Every other bad debt such as collections, charge off, foreclosure, repossession, judgments, liens etc are rated "9" ... a rating of a nine is bad, there is nothing worse than a nine rating unless it is a nine rating that is attached to an unpaid government loan. Return To Previous Page Page Last Updated
Friday June 29, 2007 | 
