Late Payments: How Do They Affect My Credit Scores?

Continuing with last weeks post, today we will cover the damaging effects that late payments have on your credit.

Late Fees
Late payments will put more of a dent in your pocket with acquired late fees. Some late fees can cost you up to an additional $35! When you consider late fees, interest charges, and carried balances of your amounts due it can begin to add up. This can pose an additional risk to the calculation of your scores as an additional 30% of your score depends on amounts owed. Simply put, if you are showing you owe too much on your credit card you pose to be more of a potential risk as you are carrying more debt.

Interest Rates
If you are delinquent for 60 days, creditors will increase your interest rate. This is additional to the late fee they have already charged you. Credit issuers will usually increase your interest rate to the default rate. This is the highest interest rate charged by a creditor, and is usually issued as a penalty for defaulting. This higher interest rate will also correspond with your finance charge. This will make it much more expensive to carry balances. Rest assured, if you had a minor bump in the road and have now kept up with on time payments for six months your credit issuer is required to give back your pre-penalty rate.

Credit Report and Credit Scores
The credit bureaus Equifax, Experian, and TransUnion are notified when your payment is more than 30 days late. Additionally, if any item is more than 180 days late (six missed payments) the card issuer will generally charge-off the account and write it off as a loss. Both a late payment and charge-off will result with an entry on your credit report that will remain for seven years. Subsequently, because your payment history makes up 35% of your credit score, a late payment can have a significant effect to your score. Also (as ridiculous as it may sound), if you are in a higher credit score range don’t think your credit score is safe from new late payments. A new late payment on a higher range credit score can actually have more of a damaging effect in lowering your scores. Whether you have a high or low score, a late payment is still an item that reflects as a risk factor when looked at by a lender or creditor.

Check back next week as we cover how to avoid late payments and its damaging effects. For any additional information, or if you have any questions feel free to leave us a comment, call us toll-free at 866-217-9841, or visit our website at



MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.


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