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Posted in Credit Scores
does paying bills within the grace period considered a late payment against your credit score?
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say for example your credit card is due on the 10th of the month...

make your payment before the 10th.. no blood no foul, and no one says anything.

make your payment after the 10th, and within the next 7 days... you would probably notice a few 'friendly reminder calls' just checking in to say hi, and remind you we havent recieved your payment..the late payment clock starts the day after payment was due and continues to count, up one for each day that goes by they dont have a payment from you.

over the next 3 weeks the calls will continue, and the tone will get less and and less friendly. as long as you make a payment anytime before the 30th day, then the worst thing that happens is you will pay a late fee to the credit card company, and you run the real risk of having them jack your interest rate to the maximum.. you should be seeing at least one written reminder for payment in the mail

now we get to the next billing cycle... they still havent been paid,on the 30th day past the original due date your interest rate has been jacked, and the penalties start to ring up. $29-$35 is common..

now we pass the next due date. on the 60th day past your original due date, then then credit bureaus are updated again, and your scores take another hit... more witten reminders, and more phone calls asking for payment. your account is in real trouble now... credit line will probably be limited or cut entirely. you'll also be charged a second late fee from the credit card company...

after the third month, (90 days from the first missed payment) then everything I've already mentioned happens again.. more calls, more letters, more fees, untill one day the credit card company decides you arent a valued customer any more, and the account is closed, and forwarded to collections.. your credit bureau is updated again, and your scores take another hit...

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No if you pay by the due date you are fine. As a matter of fact, you only are considered late if you pay 30 days after the due date. Just keep in mind you will get hit with a late fee so avoid it. 

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