When paying bills it is just as important to pay a bill on time as it is to pay it. If you are consistently late with your bills, whether or not you pay them soon becomes a non-issue. Each time you are late on a payment, if you are over 30 days late, it will be reported and placed on your credit report. This will then follow you around for the next seven years, making your chances of getting a decent interest rate next to impossible.
It can also mess with the interest rates you currently have. One late payment can send your monthly rate on almost any credit card skyrocketing. It doesn’t even have to be on the card you are late with, some credit card companies will check your credit report – and when they discover that you are running late with other bills they might just decide to jack up your rate because you are now considered a risk.
It can even affect your car insurance. When you are up for any sort of insurance, the insurance companies will check your credit to see if you are considered a risk. If so, you will possibly be paying higher rates than the guy next door, just because he pays his bills on time. So be sure to pay your bills on time, for a couple of late payments will end up costing you far more in the long run. ■
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