How Late Payments Affect Your Credit
Rebuilding you credit score after past financial mistakes can at times be challenging. If you do not have the ability to buy your first home without a mortgage, your credit score is one factor lenders use to assess character and risk. Oftentimes, when individual’s take the time to rebuild their credit, they retrieve their credit report from annualcreditreport.com and begin reviewing their report for errors and discrepancies.
Andrea Cannon, (May 2016). “How Late Payments Wreck Your Credit,” [Retrieved from Kiplinger.com]
How Often Do Credit Scores Change?
A credit score is the way financial institutions, lenders and lien holders asses creditworthiness, and manage risk. FICO scores range from 300 to 850. There are about 10% of lenders who now use VantageScore, which range from 501 to 990.
It is best to monitor you credit report in order to keep your debt to income ratio low. “Be aware of the amount of debt you have compared to the amount of available credit.” “A history of paying your bills on time helps.”
You May Also Like: Ash Cash, “Understanding Your FICO.” [Retrieved from Experian.com]