If I make late payments does this affect my credit?

Question

Sometimes I pay my phone bill or car insurance bill late but I do always pay them every month. Does this affect my credit negatively?

I do pay the full balance owed every month and never have had my services cut off or sent to collections.

Answer 1

Not normally.

Phone companies, insurance companies, utility companies & gym memberships do not report to the credit bureaus unless you are sent to collections, this is because these accounts are not considered loans.

Answer 2

No. The phone co and the car insurance co don't report your monthly bill to the credit report. As long you pay the bill after the next bill is due you are good.
You don't have to worry about that it's gonna hurt your credit. It happens cause I pay my bill a day or two late it won't change any thing.

Answer 3

It depends. If the payment was received 30 days after the due date, it will be reported as late to the credit bureaus. If it was received before 30 days after the due date, then it will be whats called a internal late and your dad will be hit with a late fee but not a reported late payment. It will however establish whats called a internal late profile which could result in your dad having problems getting additional loans in the future from this lender.

Answer 4

You should request a copy of your credit report to be sure. In a perfect world the answer would be yes because every late payment is supposed to be reported but not every company does it accurately. Also, they aren't so quick to report closed accounts and good repayment histories always either. You can contact the 3 major credit reporting agencies at the addresses/phone numbers/or e-mail addresses below.

TRW n/k/a Experian

PO Box 9530
Allen, TX 75013
888-397-3742



TransUnion
Po Box 6790
Fullerton, CA 92634
800-680-7289

PO Box 390
Springfield, PA 19064
800-888-4213


Equifax
6th & Chestnut, Suite 1072
Philadelphia, PA 19106
OR
PO Box 740250
Atlanta, GA 30374-0250
800-685-1111

or www.econsumer.equifax.com/webapp/consumerproducts/pgPublicRecords


Good luck and God Bless.

Answer 5

It depends on your company and its policies on late payment. A utility company , e.g. electricity or phone, usually issues you one or two reminders and give you a chance to clear your balance with some interest penalty before they declare your account in default and report it to the credit bureau and send it for collection. You can avoid a bad credit score if you pay the amounts off before that happens.
A credit card company however regularly (possibly monthly) reports your outstanding balance and payment status to the credit bureau and this will affect your credit score in that a potential lender can see how long you took to pay your balance and what your outstanding amounts are. The longer you take to pay them, and the larger the outstanding amount, the less chance they will lend to you.

Answer 6

As long as it isn't more than one month late; these will not affect your credit. The only time it will affect your credit usually with these types of companies is if they send the account to a collection agency/collection status.

Answer 7

It depends on how the creditor reports. Due to the costs of reporting, most creditors don't report you immediately (the more they report, the more it costs them). However, some creditors report everyone who is 1 day late. Most creditors have a grace period during which you will not be considered late. You have to call or read their policy to find out what it is. But yes, if you are late, you can be reported and it can negatively affect your credit.

Answer 8

Problem arises if you go 30 days late, on credit cards yes you will pay a late fee for 1 day over, but not reported unless over 30 days.

Answer 9

Absolutely. It is marked on your credit report as a late payment. This will be looked at if you are applying for a loan to purchase a home, car, etc. Also, if you continue this "habit" of paying your bills late, your phone and car insurance company has every right to drop YOU from their services. Be very careful on this!!! If you can't afford these items, you might want to consider something cheaper. Remember that it doesn't mean forever...but do get yourself on the right track.

Answer 10

Yes. well at least your car insurance. Phone bill shouldn't unless it goes into collections

Answer 11

It sure does.

You will be charged higher interest rates for the credit that you do get