Payment history accounts for 35% of your FICO Score, making it essential to manage your bills, especially during challenging times like medical emergencies or job loss. Creditors report delinquencies in stages—30, 60, and 90 days late—each having a progressively greater negative impact on your credit score. Recent data from the New York Federal Reserve indicates a troubling rise in serious credit card delinquencies, with over 7% of cardholders being 90 days or more overdue in mid-2024, a significant increase from the previous year. If you miss a payment, it’s crucial to act quickly; paying within 30 days can help mitigate damage to your credit score. Ignoring the debt is the worst option. Instead, reach out to your lenders to discuss your situation; they may offer payment plans or negotiate your debt. While debt relief companies can assist, they come with fees and no guarantees. Addressing missed payments promptly is key to improving your credit score and avoiding further complications.
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