San Diego, CA
Most people do not know that a “Late Payment” on even 1 account can lower a credit score by as much as 50-120 points. Facts show that ate payments quite often lead to non-payments. If you stop paying on an account altogether within a few months that account will be “charged-off” by the creditor and when that happens your credit score goes down another 50-80 points.
Charged-Off accounts get sent to a 3rd party debt collector and when they start calling you 4 times a day they also put a “Collections” notice on your credit report and once again your score drops another 30-50 points. That’s a total of “3 Negatives” on your credit report and a decrease in your credit score of between 130-250 points. This all could end up happening to you because of just 1 late payment. This is a downward spiral that keeps getting worse. Take control over your credit this new year.