Today many consumers are struggling with making ends meet. With national unemployment rate hovering at 8%, many families must use available funds to make their mortgage payment versus paying their credit cards. What implications does this have on your credit score? According to this article in Bloomberg BusinessWeek, making late payments or skipping payments on your credit cards can be just as costly to your credit score as making a late mortgage payment.
When credit card companies supply up to 58% of the information on your credit report, late payments can have a devastating effect on your score. As this article points out, each late payment to each creditor reduces your score anywhere from 70-100 points apiece. What does this article teach us? Depending on your financial situation, missing or making late payments on your credit cards may be worse than a late mortgage payment. If you are unable to keep up with your payments or foresee that you will become delinquent on your accounts, you may want to consult with a debt settlement attorney in your area. They will be able to discuss with you the benefit as well as the effect that it may have on your credit score.
Kevin Fallon McCarthy
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- Credit Card Market: Now and Then - February 23, 2018
- Make Your Credit Cards Work for You - January 23, 2018