How Do Timely Payments Affect Someone's Credit Score?

How do timely payments affect someone's credit score? Timely payments will help your credit score and credit report if they are reported by your creditors. Since 35% of your credit is your payment history,...

Since 35% of your credit is your payment history, it's important to pay your bills on time. If you need help with that, come in for an individual counseling session or money management class. Every consumer credit counseling service that I know about has at least a class on personal finance and on credit. Most also have classes on surviving a job loss to protect yourself and to minimize the damage. Understand that anytime you don't make your payments there is going to be some damage. Your credit granters don't ever want to not get a payment. You can do things to minimize the damage. You can certainly contact them, let them know that you are out of work and you are looking for work. You can ask them for 90 days moratorium which will hold the interest rate and not require payments for the next few months. It won't stop the damage but it will minimize it. Any missed payment is going to show up as a missed payment. Some may require a lesser payment that month, but that's a conversation that has to go beyond the level of the person who answers the phone. Send them information in writing and follow-up by certified mail or a phone call. Your creditor can deal with almost anything but silence. You still have to have a payment. They have rules and regulations that they have to adhere to, particularly credit card companies. Those are governed by banking regulations.

© High Speed Ventures 2011