Can my creidt be ruined after sending a promissary note and payment of legal tender?
Full Question:
Answer:
If a creditor pays an amount due late, even if it’s the full amount, it may appear as a delinquent payment on a credit report. If a debtor offers partial payment for an overdue amount, the creditor may still seek to collect the full amount owed through collections actions or
legal actions, such as garnishment.
The credit bureaus are notified when a payment is more than 30 days late. An entry is added to the debtor’s credit report and will stay for seven years. The debtor’s credit score will drop. Because payment history makes up 35% of a credit score, late payments can have a
significant effect on the score, affecting one’s ability to get new credit in the future.
According to Credit.com, the credit score calculation doesn't treat all late payments the same. While thirty- and sixty-day late payments affect your credit score more in the months they occur, their effects diminish over time as long as they're isolated incidents. Ninety-day late
payments, will harm your credit score more, especially if it occurred within the past 24 months. Therefore, missing one payment for one or two months won't be as bad for a credit score as missing several payments for one or two months.
