120 days late payment, credit score and credit report
What will happen to your credit score if you have 120 days late payment on the credit report? Do not try to get one to find out. But believe it or not, many people forget to pay their bills. Especially those who have many credit cards and travel often. To be 120 day late on a credit card payment, that is 4 months or longer, you either doing something wrong with your finances or misplace the bill. Unless of course, you are doing it on purpose.
On its own, reporting a 120 day plus late payment does no more damage to your overall credit score than a 90 day late payment does. Which is very bad already. Problem is that in addition to this sad fact, by that time your severely delinquent account has almost certainly been charged off and sits with an internal collections department, or sold to a collection agency. Having charge offs and collections will cause further credit score damage.
Can you settle the 120 day late payment? You sure can, but most likely you will be settling with debt collectors. And it will only make sense to settle for less than you owe and in return, have a collection record removed. The problem is that the charge off record with original creditor and all the Lates will stay on your credit report for 7 years.
What damage will be done to your credit score? Once you are reported as 90 day late on a payment, your credit score drop can be close to 180 points, see what affects credit score. Charge off and collection records will drive the score by another 60 to 80 points, sometimes more.
Mon Oct 11, 2010 11:10AM | Copyright: www.bad-credit-advisor.com | More in Credit Score Help | Comments (0)
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