Believe it or not, all your previous payment records play a crucial role in defining your current credit scores. Your recent credit score has about 35% of your back records. Thus, if there are any late payments in credit card debts, you will witness a big impact owing to a myriad of factors. These include overdue period, number of late payments made, amount of largest debt payment, etc. Now if the current credit score is more than 80 points, it goes down 30 points with a single late payment. The worst thing is that it takes a very long time to recover that amount. Thus, take responsibility to handle bad credit help in Vancouver before it affects your credit score.

Given below are all the main points as per the estimated overdue period.

When the payment is less than a month or 30 days late

In this case, you don’t need to hurry or panic. You just have to pay a late fee that is issued by your credit card issuer, but there will be no effect on your credit score. When the payment is made within the 30-day mark, most of the companies don’t notify anything to the credit bureau.

When the payment is late than the 30-day mark

If you have crossed the 30-day mark, then the issuer will notify the prime credit bureaus about it. After this, your creditor will add a report of the late payment to your credit report. Negative pieces of information like this will reflect on your credit report for up to 6 years, so to avoid it, make sure you take appropriate bad credit help Vancouver in time.

When the payment crosses the 4-month mark

If you start to miss payments, then the R2 code will rise up to R5. Your creditor will also get the power to close your account. In this case, you can make any payments through your credit card.

Once you cross the 4-month mark without making the payment, your creditor will mark your account as a charge-off. This means that your account is marked as bad debt and it will get an R9 code.

When you make several late payments

The credit score is a combination of your credit amount and how to make your payments. So, if you make late payments, that will directly have an adverse effect on your credit score.

Most of the time, the actual reason behind these late payments is critical debt problems. So, look for smart debt settlement services in Vancouver for better bits of advice.  You can even explore the debt consolidation loan Vancouver option.

Conclusion

With this, you have known about the drastic effect of unpaid credit card debt on the credit score. For any further information, you can contact Debtconsolidationbc to get the best help in getting a debt consolidation loan in Vancouver to pay off all your debts without affecting your credit score.