You should also be ready to explain any discrepancies in your credit history such
as late bill payments, being turned over to a collection agency, or a bankruptcy.
A low debt burden on cards goes hand - in - hand with other positive economic traits, such as
fewer late bill payments and higher credit scores.
A history
of late bill payments, using too much of one's available credit, or outstanding issues such as bills sent to collections or bankruptcies can all have a negative impact on a credit score.
But there are some unsavory consequences to
late bill payments, especially if you do this habitually: your credit history and credit score can be adversely affected, which could lead to unfavorable interest rates and additional fees on loans you take out.
The most effective way to do this is to take out some small loans to clear individual debts, like an outstanding credit card debt or
late bill payments.
Late bill payments can stay on your report for up to seven years.
Those with poor credit or
late bill payments are most likely to get higher auto insurance rates.