Finance Friday: The Importance of Paying Your Bills On-time

Orchard Bank ad

Which bills are reported to the Credit Bureau?

When you take out a loan of any kind such as credit cards, personal bank loans, car loans, mortgage, home equity, salary advances, student loans, computer loans, etc they will show up on your credit report. Each are types of credit that were graciously extended to you. If you do not pay them on time it will negatively affect your credit because they will report your late payments to the 3 credit bureaus. The 3 Credit Bureaus are: Experian, Equifax, and TransUnion.

So you want to make sure you pay these bills before they are due.

Which bills are generally not reported?

Other bills such as tuition, utility, phone, cable, etc. generally are not lines of credit so they are not reported, but if you fail to pay and they are sent to a collection agency your score will be penalized.

What’s the significance?

A person’s credit score can affect their entire life, where you live, work, go to school, and so on. FICA scores range from 300-850, the closer to 850 the better the person’s score and the better the interest rates the person will receive. A good score can potentially save a person thousands, if not, millions of dollars. Your credit score evaluates your credit history. The scores tells credit lenders whether or not it is risky to lend you money based on how often you have paid your bills and debtors in the past.

Share this Story
Load More Related Articles
  • BloggerWeek 2016
    Live

    Bloggerweek 2016 1st Recap

    Bloggerweek’s third annual conference was a setting where bloggers could talk intimately about what is on their minds regarding social media ...
  • Braided Loc Pony-tail
    Review

    7 Loc Maintenance Tips

    Have you ever wanted to grow locs? Have you ever wondered, what is the required maintenance? Many people have said to me ...
  • NabjNahj16 Recap #InspiredMobility
    Parent

    Still Inspiring 41 Years Later #NABJNAHJ16 #InspiredMobility

    Compensated Influencer: In 1975 forty-four men and women gathered at the Wardman Park Marriott in Washington, DC. Their meeting became the ...
Load More By Clever Mom
Load More In Finance Friday

Facebook Comments

Check Also

Finance Friday: How Buying a Home Changes your Financial Outlook

Many first-time home-buyers have to make a big ...

Ads