Los Angeles-Long Beach, CA (PRWEB) June 19, 2016
National Debt Relief recently shared in an article published May 12, 2016 how a consumer’s credit score could be adversely affected by late payments. The article titled “What Late Payments Will do to Your Credit Is Worse Than You Think” takes a look at the possible financial scenarios that could come up when people send in late payments.
The article starts off by pointing out that there are people who believes that a late payment doesn’t affect their financial standing that much especially for those who has been maintaining a pretty decent credit score. But this couldn’t be further from the truth because about 35% of a consumer’s credit score is dependent on credit history and this takes a hit every time there payments are sent in late.
The credit history is an important factor in assessing the risk lenders are taking on when they deliberate whether to approve a loan or not for a person. The higher the score, the better financial managers people are. Consequently, the lower the score, the harder it would be to get an approval.
The article also shares that the late fees can really throw anyone’s budget off course. It might not be a significant amount for one account but there are some consumers who sends in late payments for more than one account. This can multiply not only their worries and stress but the amount as well that they have to pay out.
There are some lenders who gives out promotional offers to consumers in the form of deferred payment for a few months and even zero percent interest payment on some recent purchases. But one thing that could nullify these offers is when the consumer start sending late payments. Not only do lenders stop the promo but demands a full payment on whatever amount was charged.
To read the full article, click https://www.nationaldebtrelief.com/late-payments-will-credit-worse-think/