January 2,2007
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Late Payment Limbo
Experian, one of the three big names in credit score calculating, found that over a third of all credit card consumers have had a late payment in the last year. While it may be the case that delinquency is a common enough error, your credit score certainly doesn't have a forgiveness clause. Experian also determined that the mean credit score of people with at least one "ding" was 585, well below the national average of 678.
Like any other problems with your credit, late payments can hang around for seven years. Not all do; some creditors don't report them consistently. And it is true that the detrimental impact of late payments diminishes over time, but the half-life of delinquency is not known. Basically, the worse shape your credit is in, the worse the impact will be of many built up blips on your report. So keep an eye on your due dates, and follow them closely. If you are facing a rough month, try calling up your card company before your due date, and letting them know the situation.