@bed wrote:
Can someone explain to me the repercussions of failing to pay off a charge card balance by the time it is due? I'm not talking about paying after the please pay by date and not cards with the pay over time option. I'm just wondering what all happens when (a) a person is actually late by, let's say, a week (or worse), and (b) when someone is repeated late, month after month (if that's even possible under the charge card terms)?
This is just a late, right? That's exactly what you are talking about.
Rule number one of all credit products of any kind: Do not pay late, or you will have consequences. As soon as you find you have paid late, do whatever you can to catch it up and get it erased, if possible. All else besides paying on time and according to terms, is window dressing.
Now, lates do happen for problems with having cash, medical issues, etc. but that results in score hits. The FICO model does not care or understand why the late occured, it only knows there was a late and then the score adjusts the calculation.
