Are you planning to take out a high-value loan anytime soon? If so, you need to make sure that you have a high credit score. Without a good credit score, it will not be easy to get a personal loan at an affordable rate of interest. If you are planning to travel abroad or renovate your home, you can definitely take a personal loan. However, without a good credit profile, it becomes expensive and difficult to get one. There are various factors that damage your online credit score. Late payment is one of the factors that should be kept as a priority. Payment constitutes 25% of the credit score calculation, which is very important. Late payments are one of the most common reasons behind your credit score damage.
What is the impact of a late payment on your credit score? In order to understand the impact of late payments, you first need to know what a late payment is. A late payment is when you do not pay your credit card or monthly instalment by the due date. However, if you are only two to three days or one week late, it actually makes no difference. Late payment is categorised into three segments: 30 days, 60 days, and 90 days.
In a nutshell, you need to be very careful about improving your online credit score. If you cross 30 days, the late payment will be registered on your credit report. Must Read : Consequences of Defaulting On A Business Loan
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Ajay Singh
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