Late Payments and Your Credit Score

If you’re buying a home using a mortgage, you probably already know that lenders will check your credit scores to figure out whether they’re willing to give you the cash to buy.

If you have late payments in your past, here’s what you need to know about payment history and your credit score.

Late Payments and Your Credit Score

Lenders want to know if they’ll get their money back if they lend it to you, and they want to know if you’ll pay it back on time. That’s why your payment history is the biggest factor in their lending decisions. It accounts for as much as 35% of your credit score!

This part of your score factors in:

  • Whether you’ve paid all your bills on time. Late payments have a negative effect on your score.
  • How late have you been? 30, 60, 90, and 120 days or more can cause your score to go down.
  • Have you had collections? If your accounts have gone to collection agencies, it reflects badly on your ability to repay.
  • Do you have charge-offs, settlements, bankruptcies, foreclosures, garnishments or other issues? Lenders will be extra-cautious.
  • How long has it been since you were late? If you’ve recently turned things around, lenders may look at that favorably.

Are You Buying a Home in Irvine?

If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for your needs (and your budget).

Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.

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