Did you recently miss a payment? Perhaps you are now wondering if late payments affect your credit score.

Late payments may damage your credit score, however, the extent to which they do so depends on the amount you owe and how late the payment is.

In this article, we will discuss how late payments affect credit scores and the steps you may take to mitigate these negative effects.

How Late Payments Affect Credit Score

It's important to make your payments on time as often as possible since that's the single largest component in calculating your credit score. There are three elements that influence the extent to which a late payment may lower your credit score.

• Your financial history and credit rating
• Exactly how long the overdue fee has been accumulating
• Just how bad the overdue payment was

FICO reports that a single late payment, based on your credit record and the intensity of the late payment, might result in a 180-point decline on a FICO, 1.68% score.

It Will Have Different Effects Depending On Your Credit Score

Depending on the specifics of your situation, a missed payment may have a surprisingly wide range of effects on your credit score. If your credit is excellent, missing a payment might hurt more than if it were average.

One with good credit who is 90 days late on a payment is the most probable candidate for the 180-point decrease stated before. Since people with high credit scores don't often engage in hazardous activity, a single error might have a disproportionately negative impact on their standing.

Even if a person's credit history is less than usual, late payments can severely affect credit scores. A late payment is a red flag since it indicates your financial habits are unclear. On the other side, those whose credit ratings are already low have shown a propensity for hazardous financial conduct, so a single missed payment won't have as much of an impact on their rating.

What Can You Do If You Made A Late Payment?

For Delays Of Up To 30 Days

Despite the fact that you were likely assessed a late payment fee and maybe an increased APR, your credit score should not take a hit as long as you make your payment before the 30-day mark. Call the creditor and see if it would waive the late charge if you have never or seldom been late before.

Over A 30-Day Late Payment

Bring your account current as soon as you can. Certainly, being late by 30 days is bad; but it is preferable to being late by 60 days, which is preferable to being late by 90 days. Your credit will take less of a hit if you are able to become current as quickly as possible.

You may ask the creditor to remove the mark after your account is current and you provide a letter of goodwill.

If There's A Mistake

A person's credit report may incorrectly reflect their financial status. Dispute any inaccuracies you find, such as a late payment that wasn't really late, by contacting the credit reporting agency or the relevant creditor.

How To Avoid Late Payments?

If you want to avoid late fees, follow these suggestions:

• Learn the dates of your payment deadlines and any grace period you may have.
• Since some methods might take up to two days to complete, it's crucial to know how long it will take for your payments to reach your lender.
• Set up direct debits to automatically deduct payments or subscribe to payment reminders through text or email.
• Having expenses automatically deducted from your bank account on the day you are paid simplifies planning.
• Save for emergencies.
• Before asking for a loan, you should figure out whether you can comfortably make the monthly installments.

Get Help To Keep Up With Your Bills

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The Title Pawn Process

Here is the brief process of taking out a title pawn:

• Visit our website and fill out the inquiry form.
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• One of our representatives will come to inspect your vehicle.
• If you have dotted all the Is and crossed all the Ts you will get the cash and can drive away in your vehicle.

Get Financial Help Today

So, if you’re also feeling the impact of this economy like many others and are worried about how late payments affect your credit score; don't worry, it's fixable. If it’s getting too hard to survive the financial burdens, however, and you have a vehicle's title in your name, pick up your phone and take out your title pawn from Georgia Auto Pawn, Inc!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.