being late with payments has a very bad effect on a credit score of a consumer
New York, NY (PRWEB) March 20, 2015
National Debt Relief recently shared in an article published March 7, 2015 some of the most common excuses consumers have when they miss out on their bill payments.The article titled “What’s Your Excuse For Not Paying A Bill On Time?” looks into these excuses and explains how it affects the consumer’s finances.
The article shares that being late with payments has a very bad effect on a credit score of a consumer. Although it is challenging to pinpoint exactly how much this affects a credit score, it can be a dip of anywhere from 50 points or more. It can mean the difference between a good credit score to a poor credit score.
One of the most common reasons consumers have when missing payments is that they are afraid that their account will have a low balance after the fact. They do not want to get caught in a financial emergency with a low balance in the bank. These are usually the types of consumers who does not have reserve funds for such situations.
The article also shares that it is possible that consumers believe that carrying a balance over to the next month will help their credit scores. The only thing it will help are the lenders who will be earning a few more off of them by adding interest, fees and penalties on to the billing statement for not being able to pay in full .
There are also times that people contend some entries in the billing statement and the way they deal with it is to not pay up the bill. This will only increase the amount in succeeding months because of fees and penalties and there is a chance that their account will fall into collections. The best thing to do is to talk to the lenders and discuss the problem.
There are also some consumers who claim that they are confused with the details on the account like the due date, grace period, interest rate even the penalties and other surcharges. The best thing to do with this is to read and understand the fine print of the agreement to prevent confusion on the payments.
To read the full article, click this link: http://www.nationaldebtrelief.com/whats-your-excuse-for-not-paying-a-bill-on-time/