Whether you are just three days late or 30 days late, not paying your bills on time could affect you for months and potentially years to come. Do you know that late payment can negatively affect your credit score and stay on your credit report for up to seven years.
Being unreliable with payments is a red flag to financial institutions, and several things can occur when you pay late.
- You’ll usually be charged a late fee.
- Your interest rates may increase.
- One late repayment can reduce your credit score by 60 - 110 points.
- Delay of 7-15 days stays on the credit report for up to 10 months.
- Delay of 30 or more stays on your credit report for up to 7 years.
- A bad credit score can impact your employment.
- You may not get any education loan for your higher studies.
- Unfortunately, it may be easier to damage your credit than to fix it. Hence, Do your best to make each payment on time.