What Other Negative Effects Come From Late Payments
Besides a reduction in your credit score, you may have to pay late penalty fees and cope with interest rate hikes because you’re not entitled to the best credit products. You may be considered a liability so this negatively impacts your ability to rent or lease property. Things like your phone bill may come with late fees so if you’re already having a hard time managing bills, this further complicates your financial issues.
If you’re constantly overdue on credit card payments, the credit card company may bump up your interest rate. If you received a promotional rate when you got the credit card, it could be stripped away from you.
When your financial reputation is in jeopardy, lenders may not be as willing to give you money. A lender wants to work with those who have a good history of making their payments on time. If you’re making late payments beyond the 30-day allowance, this will be reflected on your credit report for lenders to see.