REPAIR YOUR CREDIT: 3 Ways To Increase Your Credit Score After A Late Payment

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There are show notes and links in the description box below So make sure you inspect that out and put on'' t forget to hit the subscribe button now Before we start talking about 3 steps that you can take to increase your credit score after having a late payment I desire to talk a little bit about how late payments affect us I meet a lot of individuals and I talk to a lot of individuals about their finances and the main thing that I see is that most individuals are taught to run from their finances implying they wear'' t address them head on and when trouble comes the first thing that they push to the side is their financial resources and I desire to do a little bit of a state of mind check here since That'' s in fact the incorrect thing to push to the side we always need to face our finances head-on and make sure that we'' re addressing them since when we don'' t we end up hurting Ourselves when we have late payments struck our credit report.It'' s harming us More than it'' s harming anybody else. I understand that there ' s the frame of mind of, you know what? I wear'' t have it right now so I'' m not gon na pay in and they ' re simply gon na have to wait and that'' s great and I comprehend that but Understand that when you make late payments,'you ' re hurting yourself as far as the long run is concerned so you desire to attempt to minimize that as much as possible so that You can do whatever it is that you want to do if you want to buy a home if you desire to buy a vehicle If you desire to get a credit card, whatever your goals are, don'' t let your actions keep you from So number one the very first thing that you can do as far as increasing your post score after having a late payment We want to revisit your budget plan a lot of times if you'' ve made a late payment It ' s since we either'wear ' t have a spending plan in location or we put on ' t have a good solid budget in place And I know sometimes that budgeting can seem a little corny and I believed this too But really it actually does assist We want to know where our money is coming from where it'' s going how much of it has to go out how much we'' re conserving all of those things are crucial when it comes to Making payments on time and it'' s much easier to make those payments on time If you have an excellent solid budget plan in place and I tell my clients this all the time your spending plan is really the most essential part of Improving your credit because payment history is the biggest classification of your credit score payment history accounts for one hundred and ninety 2 point five points of your Overall credit so it'' s actually very essential that we make those payments on time It'' s 35 percent of your score is the biggest classification And so if you have a great strong spending plan in place It makes it much easier for you to make those payments On time since you know where your money where it'' s coming from and where it'' s going and you can plan appropriately So if you require help creating a great solid budget plan There is a link in the description box below to the spending plan class that I have all of my customers take It actually does help having a spending plan is crucial number 2 so one thing you desire to make sure that you comprehend is how the category concerning late payments is in fact Calculated so late payments are calculated like this.It'' s the overall number of on-time payments Divided by the total number of payments and that'' s going to provide you a portion you have Different portions hundred percent is going to be considered exceptional 99 percent is going to be thought about good you have 98 percent, which is fair anything below ninety seven percent is going to be considered poor in concerns to the payment history portion of your credit report So let'' s state you only have one account On your credit report and you have this account for a year and you make one payment late So that implies you have 11 on-time payments out of 12 total payment.That'' s one to put you at 91.6% which is bad since we'' re below that 97% if you look at that same scenario with Five total accounts reporting to your credit report and you just make one late payment That puts you at 59 on-time payments out of 60 top which is going to put you at a 98% So that 98% is thought about fair as far as payment history is concerned So what that informs us is that the less amount of accounts we have a late payment is going to make a larger effect Versus if we have more accounts that late payment it softens the blow So that brings us to number three in order to rebound your score from late payments What we'' re going to have to do is include extra accounts to cushion that late payment kind of sandwich it if you will to soften the blow of Those late payments on your report.So we do that by including additional favorable credit history So we'' re adding other accounts.

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