Dont Be Late!

A Payment is past due even if it one day late. Therefore, it is a good idea to mail payments at least one week prior to the due date. Late payments not only incur penalty fees but they also give lenders the opportunity to increase fiance charges. If that wasn't enough, late payments will appear as a blemish on credit reports. For expediency, a good option is to make payment on-line.

Derogatory credit information often creates a domino effect. One late payment on one account could cause higher rates and fees on all other account thanks to the practice of universal default. Not only will it affect credit but it can also affect auto insurance rates. Howard Strong, author of What Every Credit Card User Needs To Know, says " It shouldn't matter to a creditor if you are late on a different card. " He says the creditor just uses it as an excuse to " Knock up the rates". But unfortunately, late payments does matter to future lenders. Late payments are seen as a high risk. If a borrower becomes delinquent on any card, it indicates a higher risk factor across the board.

Also did you know every late payment that occurs knocks your points down between 30-50 points? So it is very very important to avoid late payments.