How Bad is One Late Payment?

When people meet with debt relief lawyers to discuss bankruptcy filings and other possible solutions to their debt problems, most of them tell a similar story of a debt problem that started gradually. Yes, there are people whose finances tanked suddenly after a personal disaster such as an injury or a divorce, but an even greater number of financially distressed people are those who, at some point, crossed the boundary between barely making ends meet and not making ends meet. The first time they missed a payment on a bill simply because they did not have enough money when the bill was due, they promised themselves that they would set things right once their paycheck cleared. They tried, but the bills did not stop coming, and eventually one late payment turned into two and then three, and before they knew it, they were overwhelmed with debts they could not pay. 

There is no universal answer about how bad it is to miss one payment. Whether you miss the payment that is due soon has less to do with how bad it is to miss one payment and more to do with whether the funds materialize in your bank account before the grace period ends. For help correcting course after one late payment, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

The Effects of a Single Late Payment on Your Credit Report

As unfair as it is, missing just one payment on one bill can do major damage to your credit score, even if you have never missed a payment before, and even if you pay all your other bills on time. A single missed payment can lower your credit score by 50 points, which can mean a major difference in interest rate on the next loan you borrow, or it can mean the difference between eligibility and ineligibility for a loan that you need. The negative mark on your credit report stays there for several years. Your credit score will gradually increase as you continue to pay bills on time, but it could take several years before your credit score goes as high as it was before your missed payment.

How to Reduce the Damage a Late Payment Does to Your Credit Score

If you do not need to do things where your credit score makes a difference in the near future, such as applying for a loan or an apartment rental, then the best thing to do is just to go back to paying all your bills on time and wait for your credit score to fix itself. If you need immediate relief, though, you can try to find a workaround. First, make sure that the information on your credit report about the late payment is accurate, and if it is not, ask the creditor to correct it. If it is accurate, ask nicely if, since this late payment was a fluke, the creditor would be willing not to report it to the credit reporting bureaus. You can even offer an incentive, such as making a bigger payment in the next billing cycle or enrolling in autopay.

Contact the Law Office of Melanie Tavare About Bouncing Back From One Late Payment

A debt relief lawyer can help you if you missed one payment and do not want the problem to get worse. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.