One Third of Americans Have Been Late On Paying A Bill This Year
A new survey from STASH reveals one in three Americans have paid a monthly bill late within the last year. Of those late payers, 46% have missed two or three bill payments.
Money was considered a major source of stress with 62% of the respondents, but 34% refuse to talk about money problems because they feel embarrassed. Nearly 25% of participants said they are ashamed of their financial habits.
How Does Late Bill Payment Affect Credit?
All monthly bills can impact your credit, but not always in the same way. For instance, paying your electric bill on time every month may not improve your credit score. However, not paying your electric bill on time could hurt your credit score. If the bill becomes so far past due that it goes to collections, that will significantly damage your score.
Monthly loan payments and credit card payments will directly impact your credit score. In fact, your timely payments of your bills is the most important factor in determining your credit score.
Using On-Time Payments to Boost Your Credit Score
Experian recently launched a new service called Experian Boost. This allows consumers to submit their banking information and get an instant boost in their credit score from positive bill payments. Experian evaluates the account for utility bills, phone bills, and other bills that do not typically have a positive effect on credit. The boosted scores go into effect immediately.