It’s been said that your credit score impacts everything from your ability to get approved for a mortgage to whether or not you will qualify for a credit card with rewards, so it’s no surprise that keeping up on all of your bills can be stressful and important to do regularly. While you may understand the importance of paying your bills on time, though, you may not realize just how having even one late payment can impact your credit score over time. Here are 10 ways having one late payment can impact your credit score in the long run.

1) A late payment can stay on your credit report for up to seven years.

Late payments can impact your credit score in a number of ways. First, the late payment will remain on your credit report for up to seven years. Second, it can affect your credit utilization ratio, which is the amount of money you owe divided by the total amount of available credit. This ratio is used to calculate your debt-to-credit ratio and is considered important for certain types of loans.

2) A late payment can cause your credit score to drop by 100 points or more.

A late payment can cause your credit score to drop by 100 points or more. In fact, missing just one payment can lower your credit score by 50 points or more. This can happen because the lender will report the late payment to the three major credit reporting bureaus and it will stay on your credit report for seven years. If you have other late payments, this can also affect your score. The reason?

3) A late payment can lead to higher interest rates on your credit card and other loans.

A late payment can lead to higher interest rates on your credit card and other loans. It can also lead to lower credit scores, which can make it harder for you to qualify for things like mortgages and car loans. One way to get back on track is by enrolling in a debt management program.: It can also lead to lower credit scores, which can make it harder for you to qualify for things like mortgages and car loans. One way to get back on track is by enrolling in a debt management program.
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4) A late payment can result in a late fee being charged by your lender.

A late payment can result in a late fee being charged by your lender. Lenders may also require an increased interest rate and/or larger down payment the next time you take out a loan. If you have had more than one late payment within the past 12 months, it could be difficult to get approved for additional credit cards, loans, or other forms of credit.

5) A late payment can cause your account to be turned over to a collection agency.

A late payment can cause your account to be turned over to a collection agency. Â This will then result in an additional 30-day delinquency which will have an impact on your credit score and make it difficult for you to take out any loans or open any new accounts in the future. Â A late payment will also cause interest rates on all of your credit cards, as well as other loans, to increase by at least 1%. Â It can also lead to higher insurance premiums and utility bills.

6) A late payment can lead to wage garnishment.

A late payment can lead to wage garnishment if you owe more than $2,500. If you are the primary person on the loan, the bank can take up to 15% of your wages. If you are not the primary person on the loan, they may be able to take 25% of your wages until they get repaid. Either way, this will impact your credit score and chances of getting loans in the future.

7) A late payment can result in the loss of your home or car.

A late payment can result in the loss of your home or car. If you are unable to keep up with your mortgage payments, you may be forced to sell your home or have it repossessed. When this happens, the lender will report to all three credit bureaus that you were delinquent on your payments. This will significantly lower your credit score, making it difficult for you to find financing for another home in the future.

8) A late payment can cause you to be denied for a loan or insurance.

A late payment can cause you to be denied for a loan or insurance. Late payments stay on your credit report for seven years from the date of delinquency and reduce your credit score by thirty-five to one hundred points.

9) A late payment can lead to identity theft.

A late payment can lead to identity theft. Because of this, it is important that you always stay on top of your finances and avoid paying anything late. If you do find yourself in the position where you have missed a payment deadline, the best thing to do is contact the company you owe money to and see if they will offer an extension or deferment plan. If they are unable to help, you should look into getting some form of credit protection, such as fraud monitoring or identity theft protection insurance.

10) A late payment can cause stress and anxiety.

Late payments can be an easy mistake to make, but they can have long-lasting and damaging effects on your credit score. A late payment will stay on your report for six years and can cause a significant drop in your credit score. Late payments can also cause stress and anxiety from the frustration of not being able to pay on time.

10 Ways a Late Payment Can Impact Your Credit Score