Overdue payments incur late charges and a bad credit score

If you have debts from personal loans, unpaid credit card balances or any other forms of loans, it is imperative that you repay them on time every month. Even if you are only late by a day or two, overdue repayments incur a late charge and affect your repayment record.

Your payment record is the most important aspect of your credit score because it shows how you’ve managed your finances. So any late payments, defaults or even just forgetting to pay your credit card for a few days will have a negative impact on your credit score. A low credit score may result in a higher interest rate or denial of the loan/credit application. Therefore, you should never forget to repay on time. You can set up autopay instructions to avoid any oversights when it comes to repayments.