Good credit can save you thousands on loans, credit cards,
insurance, utilities, cell phones and more. While it takes years to
build up a great credit history, it can take only a few months to
destroy what you’ve earned. In fact, dropping your credit scores by a few hundred points only takes 90 days.
You see, one of the worst credit mistakes you can make is letting an
account become 90 days overdue. 30 and 60 day late payment records are
damaging too, but their credit score impact is only temporary. When you
are 90 days late on a credit card or loan, your credit score will drop
significantly and the damage will continue for up to 7 years. One 90
day late payment is as bad for your credit score as filing for
bankruptcy. You can read more about how late payments really impact your credit online here.
Do you have trouble making your payments on time? It may be time to
crack down on your monthly finances. Create a detailed spending plan so
you know exactly where the money needs to go each month. Sign up for an
automatic bill payment system through your bank. With a little
planning, you can make paying your bills a snap and can avoid
destroying your credit scores.
What is your system for paying bills and managing your monthly
spending? Do you use Quicken and track every check? Or do you have a
more casual system worked out? Share your feedback and tips in the
comments section below.
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