Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Scores
Profile Image

Question By

0 Contributions
0 People Helped
does paying bills within the grace period considered a late payment against your credit score?
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
749 Contributions
659 People Helped

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...

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.