Late Payments: How Long They Show Up On Your Credit Report

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“Late payments show up for several years. It will pull your score and keep you from getting a loan application approved.”

Much as the modern technology has made many aspects of your life easier, you often struggle to manage all of your debt obligations. Whereas calendars have made easier to remember important dates, you often find yourself falling behind payments.

Undoubtedly, you can safely put off some things, but you cannot postpone repayments. It is vital that you have enough money to settle your debt on time. Unsecured personal loans in Ireland are available for bad credit borrowers too, but they charge a high interest rate. To avail better deals, you should ensure timely payments.

Short Delay Does Not Appear As Delinquency

Missing your due date by a day or two is not going to take a toll on your credit score. Every lender waits for a few days. Late payments make their ways to your report only when it has been at least 30 days past the due date.

However, it does not mean that you can stay with impunity as long as you pay within 30 days of your due date. If the due date slips through the cracks, your lender will charge you a late payment fees.

Late Payments Can Cause More Damages Than You Expected

As you miss your repayment, your lender will report your credit bureau about your negligence. As a result, you will lose your credit scores. Your one default can pull dozens of points.

If you do not repay immediately to elevate your score, your account will become increasingly delinquent and your scores will keep going down. As two months pass you by, it will permanently cause damage.

Late payments may stick up to 7 years from your default date.

In the meantime, if you take out an unsecured loan in Ireland, your report shows high default risks due to which you will get the loan at a high interest rate.

What Should You Do To Minimize The Impact Of Late Payment?

Here are some ways you should follow to minimize the default risk.

Request for goodwill adjustment

This idea is worth following if your previous payment history is excellent and you have a good relationship with your lender. You will write a goodwill letter in which you explain your situation to make default. However, your lender will not assert to remove your late payment if you do not have a stellar credit history.

Negotiate with your lender

You can convince your lender to remove the default if you agree to partially settle your debt or to auto debit mode. Whatever the terms your lender agree to, make sure that all of them are in writing. This brings transparency between both parties.

Dispute inaccurate information on your report

Just because you do not have made any default, does not mean that your report does not show up defaults. It is vital that you periodically go through it to ensure it does not have any error. If you find any payment marked late erroneously, dispute errors with credit bureaus. You have the right to stand up against any default that you do not recognize. Credit bureaus rectify information as you bring it to their notice.

The Bottom Line

The significant reason for late payments is lack of funds. The best method to avoid falling behind late payment fees is you give priority to debts among all expenses. Spend money carefully so that you are not strapped.

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