A late payment is reported by the creditor to the Credit Bureaus when you are 30 or more days late. There are 5 ways a bureau may record a late payment: 30, 60, 90, 120, & 190 day late. The longer the late the worse the impact on your credit score. Each month’s lateness will count as a new late mark affecting your score negatively each time.
Payment history is the most important factor when it comes to a good credit score. Our solution for late payments is to remove these negative marks from the creditor and/or third party records along with credit bureau files, resulting in a complete and permanent resolution.
If your payment is due on the 1st, and you are 20 days late, this would not get reported to the credit bureaus and should not affect your score. Although it will get recorded on the creditor’s internal records and affect your interest rate and relationship with them in addition to excessive late fee penalties.
The credit rating of someone with great credit (700-850) will be affected less significantly by a rare 30 day late payment than of someone who has consistent late payments and derogatory marks and is already on the low side of (450-680). A person who is consistently on time and has a proven track record along with more positive accounts which out weight the one rare negative mark.
Regarding collection accounts, our solution is to remove these negative items from the collection company and/or third party records along with credit bureau files, resulting in a complete and permanent resolution. In addition we permanently and quickly stop all the harassment calls and letters.
Here is some extra info:
• The original creditor may charge off (sell) your account after 6 months of non-payment.
• Negative accounts / items are reported to the credit bureaus by way of UDF (Universal Data Form.) Which is a form the creditor, collector or attorney completes in order to report your account to the credit bureaus.
• If collection account is not paid, the collector or creditor can sue you in court and may be awarded a judgment, garnishment of salary, or freeze of bank accounts.
Collection accounts are accounts which have been sold or transferred by the original creditor to the third party collection company or attorney collectors. In such cases the debt no longer belongs to the original creditor and is considered “charged off”. In some cases the original creditor may have their own internal collection department, but this is not very common.
Despite a collection account being paid or settled reflecting a $0 balance, if the actual rating of this account is marked “paid collection” or “settled collection” it will affect the score negatively. So not only does the credit scoring system rate you on what you owe, but also on the status of the account.