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[07:04:15 AM Thursday, March 15, 2007]
Late Payments - Will You be Approved for the Best Credit Card Applications?
Factually, determining precisely how to manage your credit score is puzzling. So, to fill out online credit card applications for the best credit cards, you are to master credit scoring first.
In this respect, avoid late payments, they are vexatious to your credit score. Late payment is a delinquent payment, a payment that is made after the due date. As late payments are considered to be the worst thing you can do to your scores, they will surely damage your credit history. In fact, not everyone is tending to maintain a good credit history, but you should. Only then you will have the real possibility to submit credit card applications for the top credit cards.
Luckily, nowadays people are offered a variety of different credit scoring models with a different purpose and formulae. There are 4 main kinds of late credit card payments:
- 30-days late payments;
- 60-days late payments;
- 90-days late payments;
- 120+ days late payments
One of the widely spread scoring systems is supposed to control your 90-day late payment. Mind that if even once you have 90-day late payment, it will damage your credit history and it will remain on your credit report up to 7 years. So, if making payments, you have already been 90 days late, you are thought to do it again and again. But in case you are likely to keep your credit score high and your credit history excellent or good, you?d better avoid making 90-days late payment as it is as harming to your credit score as bankruptcy.
As for 30 days and 60 days late payments, you are not likely to worry about a long, serious impact on your credit score. It does damage your credit score in case it happens too frequently. But if you come across 30-days or 60-days late payments only once, it won?t be so harming. Thus, make your payments on time and apply for a credit card online to improve your credit.
Your credit score can also be affected because of 120+ days late payment. But in this case it will doom your scores indirectly. From this point of view, these late credit card payments will appear on your credit report as well, lowering your credit score.
If you keep on making payments beyond 90 and 120 days, your credit score will suffer from the following records: ? collections;
? tax liens;
? settlements (payments);
? repossessions or foreclosures.
All the above mentioned records are reported on your credit report, if you fail to make payments on time. With the exception of ?tax liens?, the rest of the records are preceded by late payments. But once you have ?tax liens? on your credit report, your scores are doomed to drop. So, your credit score will be damaged. It will be useless to pay off or release the tax lien, as you won?t be able to raise your scores.
Such records as collections, settlements, repossessions and foreclosures have also a negative impact on your credit score. Being the result of late payments, collections will damage your scores as well. The credit score can also suffer seriously because of the settlements. Even if you pay the settlements off, they will be still regarded as late payments.
Though credit scores turn to be a difficult business to do, you can always protect yourself. Just view your credit report once a year and correct the errors. Remember your credit score and credit history are of great value. So, don?t let late payments damage these treasures. Pay your bills on time and apply online! |
