Which should you make and which should you miss? A couple of decades ago one creditor was known for being so sloppy with it’s records that no one took delinquencies from them seriously. “Oh, don’t worry about that one; it’s just Sears” was heard in many trade groups and credit bureaus before the retail giant got its act together. But are there accounts you can pay late these days? Yes, and no.
First, if you are going to be late on anything DON’T let it be your mortgage. Next on the list is your car payment. Then look at the rest of your accounts–it’s better to miss a payment on one big account and pay all the little ones on time–the number of delinquencies is more important than the size of the debt.
And finally, missing a utility payment will get you a late charge and maybe your service turned off (if you let it go too long) but it won’t show up on your credit rating. If you are trying to repair your credit it might be worth taking a hit with late fees and preserving your history. Other bills that probably won’t get reported are medical bills, insurance payments, daycare fees, newspaper subscriptions, and layaway payments. Make sure these get paid before they end up in collection (ugly) and you’ll be fine as far as your credit report goes.
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(9 votes, average: 4.11 out of 5)
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Usually you can find out if your credit card or loan has a grace period by reading through the terms and conditions. This will tell you what leeway you have.
Would it be safe to say that if you are really stuck you should let the larger items go and pay all the small accounts?
Do late payments on auto insurance get reported?
Rachel, it’s not that hard and fast–paying the smaller ones and letting the larger ones go–for example, always pay your mortgage even if you have to let credit cards go. Always make your car payment if possible. Secured loans count more heavily. But if you’re looking at paying a bunch of smaller credit cards and missing the payment on one big one, then , yes, I’d do that. Auto insurance lates don’t show up, so that’s a good opne as long as you don’t lose your coverage!