New loans are a great way to establish credit when they are used correctly. However, when a new loan has a late on it, you will have several different problems associated with it. First of all, what are you doing with a new loan and then having a late?  Don’t, it costs you a ton of points.  Here’s why… It’s new (1), it has no history (2), it has a balance (3), it has a late (4), and you had an inquiry to get the new loan (5).

The solution is to not have a new loan with a late attached to it. It shows that you can’t control your finances and so it will hit you harder than if you had a late on an old established account.  It’s just good practice to always pay your bills on time as suggested in Secret # 1.  But now that you have a late on that new account, it’s best to delete the account or get the late repaired.  Refer to the Credit Repair Tip section to see what needs to be done to get negative items removed from your credit report.