Do you know what can damage your credit score fast, and affect your credit report in a profound way?
Contrary to what you may think, it's nothing really huge, like defaulting on your mortgage loan, or $35,000 car lease payment.
No, much smaller incidents of lax financial discipline can cause long term negative effects on your credit rating, and put you in a category of bad credit holders. This will be reflected by entries in your credit report, that all prospective lenders will see, when dealing with your application for finance.
OK, here are the most common causes: late (also called delinquent)payments, or skipping payments altogether, which looks like ignoring the lender.
Yes, there's a grace period, usually 30 days. But, once you use that, your credit score can drop as much as 100 points. Truly, a disaster for future borrowers!
If that's your only failure, you should be able to rebuild the lost points. However, the time it'll take will be much longer than the 30 days delay in repayment.
The conclusion? Keep on guard, and don't make little savings for the sake of big losses!
