Why Paying Late Will Ruin a Good FICO Score
Has it ever come to your attention that late payments could be a nightmare to your FICO Score? Let it be the last thing you could ever imagine of doing to your score.
The weight of your billing records indicated in FICO score formula is quite a lot and contributes to almost 30% of your score. This is due to the direct relationship of individuals not settling their bills on time and default. The score foretell chances of default of the lender so as to make proper assessment before lending.
Late settlement of bills will also hurt you due to the duration to which it is taken into account. The account report usually take seven years of your billing history, once you fail to make a single payment then it will stay with you for a long period. Three factors will make a missed payment a determent to your FICO score.
• How frequent do you make delayed payments?
• How current was your previous payment?
• What period did you take prior to paying?
comments
Leave a Reply