The Impact of being late on your Credit Score

It’s already a well known fact that being late on your payments is not good for your credit score. That said, where you stand on the ladder of how high your score is will determine just how much you will be negatively impacted from a late payment. For example, someone with an impeccable past payment history and a 790 score will feel the effects of even just one 30 day late payment much more than someone with a 690 score. The cost of a 30 day late for the former might be close to a 100 point decline and at least a 50-60 point decline for the latter. It’s the old adage, the bigger you are the harder you fall. The one saving grace may be that because you might be someone who in the past has demonstrated a proven ability to maintain a near-perfect payment track-record a lender may be willing to even forget about reporting you as late in the first place. This is where that so-called idea of having a good relationship with your lender comes into play. Conversely, if your lender does indeed report you to the credit bureaus as 30 days late for the first time ever….give them a goodwill call and simply ask very nicely if they would do you a favor and remove it altogether. Hey, ya never know.

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Can you live without having a credit card?

The answer to the question is a resounding YES! Living without credit cards in today’s society is a lot simpler than you might think. Traditionally it’s always been expected that you should have at least one usable piece of plastic in your wallet. In the event of an emergency it’s always been thought that you should have at least one credit card…particularly in the face of an emergency. Renting a car, booking a hotel, or purchasing a plane ticket are transactions that historically have been done with the use of a credit card. Today there a number of ways to transact all of the vital things that you need without having to rely on a credit card. Rental car companies, hotels, and e-commerce travel websites will almost all accept a transaction done on a debit card with a VISA or MasterCard logo. Also, you can always get a secured credit card. Capital One is one of the larger creditors that easily offer consumers a secured card. With a $25 application, and $300 deposit you can have all the full benefits of making important purchases with credit. More importantly, as long as you pay on time using the secured card those transactions will be reported positively to each of the credit bureaus….boosting your score. So, fear not and use debit and secured credit.