How you can minimize the damage to your credit score from late payments

credit score
On-time payments are the biggest factor affecting your credit score, so don't miss payments.

April 08, 2022 –Hispanic Solutions Group

As it is common domain, paying 30 days or more late could lower your score by as much as 100 points. According to experts, try the following strategies to manage payments.

On-time payments are the biggest factor affecting your credit score, so don’t miss payments. If you have impeccable credit, a payment more than 30 days late can lower your credit score by up to 100 points.

But sometimes it is impossible to pay on time, due to job loss or other financial crisis. If you find yourself in a difficult situation, seek help and strategies for when you can’t pay all your bills.

What you need to know about how late payments work and how to deal with them.

When is a late payment marked on credit reports?

Under federal law, a late payment cannot be reported to credit reporting agencies until it is at least 30 days past due. An overlooked bill won’t affect your credit as long as you pay within 30 days, although you may have to pay a late fee.

The content of your credit reports is important because that is the data used to calculate your scores. Since payment history is the most important element in what makes up your credit score,

The Data. –If you received payment modifications from creditors due to the pandemic, you have some protection under the CARES Act enacted in late March 2020. Accounts that were paid on time will continue to be reported as current while the payment modification is in progress. instead, as long as you pay according to the new contract.

How do I know there is a late payment on my credit report?

If you see a late payment pop-up, check all three credit reports.

Through April of next year 2022, you are entitled to free weekly credit reports from the three major credit reporting agencies:

Experian, Equifax and TransUnion.

You can also monitor your account activity with a personal finance website.

What can be done if I have a slip?

If you arrive less than 30 days late.

You may have been charged a late fee and perhaps a higher APR, but your credit won’t be affected as long as you pay within 30 days.

If you arrive more than 30 days late

Please update your account as soon as possible. Thirty days late is bad, but it’s not as bad as 60, and as bad as 90. The sooner you catch up, the less damage to your credit.

If it is a mistake.

Credit reports sometimes include errors. If you spot incorrect information, such as a payment marked late when it wasn’t, dispute the error and ask the credit reporting agency or creditor involved to remove it from your credit reports.

How long does a late payment stay on my credit report?


It can stay on your credit report for 7½ years from when the account was initially reported late. However, the impact on your credit wears off over time.

Will making a partial payment prevent me from being reported late?

The answer unfortunately is no. It may seem like a good faith effort to send at least something when you can’t pay the minimum payment or a regular bill.

But partial payments won’t keep you from being reported late and maybe sent for collection.

How can I avoid late payments?

You can prevent problems with these strategies:

Many credit card issuers allow you to select payment due dates. You may want to stagger the due dates to work with your paydays, or group them together to help you remember.

Set up text alerts or calendar reminders about bills that are due in a few days.

If you can do so without risking overdrafts, consider using automatic payments to pay at least the minimum as soon as a statement is issued. You can go online later to pay more.

Consider making payments with your credit cards throughout the month. Paying off your balance each week protects your credit in two ways: You’ve already paid when the due date arrives. And keeping your balance low relative to your credit limit improves your credit utilization, Which is the second biggest influence on your score.

Some creditors have programs for emergency situations for people affected by natural disasters or a pandemic, such as the one we are experiencing today.

If you have any questions related to finances, credits in the United States and other related issues, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to info@hispanicsolutionsgroup.com.

If you need to make an appointment you can ask here or accessing financial information on YouTube, the credit channel, our specialists in charge Jessica Aliaga-Froelke will be informing you of any concerns regarding this and other financial issues of general interest and guidance as in this topic, today we provide you with the following report so that you can make your most important economic decisions, also himWe invite you to follow our social networks: LinkedIn, Facebook, Twitter, tiktok and instagram.