Never miss making the minimum payments on time on your credit cards, car loans, personal loans, etc…No matter what the circumstances!
Anytime you miss paying the minimum payment on the due date or pay less than the minimum, you are considered late. This information is reported to the credit reporting agencies.
Missing monthly payments might not seem like a big deal, but it is one of the worst things YOU can do for YOUR credit report. Your Credit Grantors and Lenders take a deem view to late payments behind the scene. They may not contact you and actively demand payment, particularly for the first 30 to 60 days, but this information will be listed on your credit reports for 7 years.
You might be assessed late fees, compounded interest, your interest rate might be raised making it more expensive to carry a balance or just be charged a higher interest rate next time you try to borrow.
A single late payment might not do too much damage, but creditors will determine your risk as a borrower for months if not years in the future based on this information. The higher number of late payments aka delinquencies, the worse for your credit score. Your payment history makes up 35% of your credit score. Credit Scores range from 300-850, these numbers a derived by assessing your credit history.
I cannot stress enough the importance in using credit the right way to build and maintain a STRONG credit score; late payments are exactly the kind of data that affects your credit score.
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Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.