A 30 Day Late Payment can Drop Your FICO Score 60 to 110 Points
Late payments are the “biggest foul” when it comes to credit cards, warns Ben Woolsey, director of marketing and consumer research at CreditCards.com — the consequences can include late fees, jacked-up interest rates and a lower credit score.
Take Chase Bank’s Sapphire card, for example, which has a current annual percentage rate of 13.24%. If you make a late payment, the APR could jump to 29.99%. Plus, you’ll be hit with a late fee of up to $35. If you miss two or more consecutive payment dates, the late fee can soar to 3% of the outstanding balance.
Late payments, especially those more than 30 days overdue, can hurt your credit score. Payment history accounts for 35% of a FICO Score, the most common credit score, which ranges from 300 to 850. A single 30 day late payment can drop your score by 60 to 110 points, according to the CreditCards.com website.