Late payments put consumers at risk
Jul 16, 2012 Walt Wojciechowski
The news source notes in a separate article that subprime consumers more prone to late payments may be at risk for serious credit score damage. Citing a study conducted by the Fair Isaac Corporation, the media outlet found that a late payment can cause as much as a 90 to 110 point drop on a FICO score of 780 or higher. This black mark will remain on a credit report for seven years.
There is some hope, though. If a payment is only slightly late, there's no need to panic. "The first thing to note is that most lenders do not report missed payments until the account is 30-plus days past due," Anthony Sprauve, director of public relations for MyFico.com, tells the news source. "Technically [for minimally late payments], and fees and interest charges may apply. But in most cases, this late payment would not be reported by the creditor to the credit reporting agencies (CRAs)." In addition, consumers that are usually up-to-date with their payments are less likely to be penalized for slightly late payments, as larger card companies have analytics models that determine timely payers.