It depends on your credit card company regarding when they will report your late payment to the credit bureau. Some credit card companies will report your late payment even if you are less than 30 days late while others will submit a report to the credit bureau when you are 60 days late.
If the credit card company report late payment that is 60 days late, it means that you won’t suffer any impact if you are 30 days late. This issue is up to the discretion of the credit card company since they will be looking into many factors. For example, they will take a look at your payment history prior to making the decision to inform the credit bureau.
Late payment for at least 30 days can cost you at least 60 points. You must keep in mind that you are considered 60 days late if you make the payment anywhere in between 31 – 60 days late. Usually, the credit card company will report a late payment when no payment is made on the next due date. It is very rare that a credit card company will report a late payment just after the due date is passed for example 2 – 3 weeks after the first due date.
You should always let your credit card company know if you are facing a difficult situation that prevents you from being able to clear the payment promptly. Your credit card issue may be understanding and help you arrange for an easier repayment plan if you contact them about your financial difficulties. If you are only late in making payment once or twice, your credit score will not suffer serious impacts.
If you are regularly late in making payment, your credit score can take a big hit. This is because the credit card issuer will see this as a red flag that you are an unreliable borrower. Besides, you will also have to face with many other extra fees such a late fee and increased interest rates. Paying late is the reason why many people have decided to neglect their accounts and stop making repayment so that their debts get reported to the debt collection agency. If you get reported to the debt collection agency, the record will stay on your credit report for 7 years.
Therefore, it is important that you keep the spending level to only 25 – 20% of the credit line. You should try to use cash to pay for most of your items and only use your credit cards when necessary. If you spend a lot of money on your credit card, it can be harder to repay the outstanding debt so it is the best practice to keep it to a minimum spending.