Recent late payments are very costly on a credit report. The credit bureaus see this are being irresponsible and will drop your points as a result. You can have a hundred reasons why it was late and all of them good reasons… remember, they don’t care and will still drop your points. This is all based on a program that takes the information and runs it through the calculations and voila, you have a lower credit score, no human touch at all, just a machine crunching facts. So, don’t be late! A late will stay on your credit report for 7 years, although it will diminish in cost to your points over a 2 year period then settle in for the rest of the 7 years at just a few points lost.

Other situations that impact our credit score will be how old the account is with the late payment, the older the better. If your account has a high balance or a low balance, the low balance account will help to reduce the impact of a late on that account.

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