Mortgage FAQ: How Much Will One Late Payment Hurt My Credit Score?
July 26, 2016
"I’VE BEEN TRYING VERY HARD TO IMPROVE MY CREDIT SCORE, BUT I SLIPPED AND WAS LATE ON ONE OF MY BILLS. HOW MUCH WILL ONE LATE PAYMENT HURT MY SCORE?"
Although a single late payment can lower your credit score—since payment history is 35% of your FICO credit score—how much it affects your score will depend on a lot of different factors. For example, making a payment one day late on a low-limit department store credit card may not be as detrimental to your credit as being 60 days overdue on your mortgage. Some of the factors that will determine the impact on your score include the type of account that it is, how late the payment is, if you’ve had other late payments, and what your credit score currently is.
The important thing is to make the payment and get your account back in good standing, which you’ve done. Being late is one thing, but not making the payment at all is another thing altogether. Generally, if the late payment is your only late payment in the last several years, you shouldn’t worry too much about it. Also, keep in mind that a lender may choose to overlook a single late payment if the rest of your credit is very good. In the end, it’s not always about your credit score, but rather your “credit-worthiness” in a lender’s eyes.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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