Whether your bank account balance was low, you forgot to make a payment or the mail arrived late,

missing a due date on a credit card or loan feels terrible.

If you don't take quick action, a late payment can negatively affect your finances

for years to come.

This podcast will explain what happens when you make a late payment,

how your credit gets affected, and tips to minimize potential damage. Plus I'll

answer a question from a longtime Money Girl podcast listener named Daniel S who's trying to help his

daughter boost her credit after missing several payments. Hey friends

welcome back to the 860th episode of Money Girl.

If you're ready for more knowledge, resources, and motivation

to manage your money in the best ways possible,

you are in the right place.

I'm Laura Adams, an award-winning author, money speaker, founder of the

money stack newsletter and I also work as an on-camera financial spokesperson and partner

with select brands for PR and content marketing.

As always, you can learn more, sign up for my newsletter, and email me at LauraD Adams.com.

All right, so let's talk about how late payments affect your credit. You probably already know that not paying a

credit account on time is a serious no-no in the financial world. But you may not realize

how you pay your bills is the most critical factor that credit scoring models, like FICO and vantage score,

used to calculate your credit scores. Your payment history is what I call the king of credit because it typically

makes up 35% of your scores. Now there are other essential factors like your total debt, your credit utilization

ratio, the number of accounts you have, and any recent credit inquiries, but none

...