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Barely Late Payment Could Hurt Your Credit Scores

Have you ever wondered what could happen to your credit scores if you were just a day or two late on one of your credit card payments?

The truth is that in many cases, nothing will happen at all. That's because a lot of credit card issuers will not report 30-day late payments until your account is actually 30-60 days past due. So, other than dealing with a hefty late fee and some added interest, you might have nothing to worry about in relation to your credit scores.

However, it's important to keep in mind that any payment made from 1 to 30 days late and reported by your credit issuer to the credit bureaus will be treated by the FICO credit-scoring model as a "30-day late". This means that it's still possible for a barely late payment to have a negative effect on your FICO scores, but what truly matters is whether or not your credit issuer decides to report such payments.

on Thu, 2012-07-05 17:00