Definition
When you’re late on a payment for a loan, credit card, or other financial obligation. It can negatively impact your credit if it continues.
What to consider
- Set up automatic payments to avoid missing due dates.
- Contact your creditors as soon as you notice a slip.
- Even one missed payment can affect your credit over time.
Real world scenarios
- Amber misses two credit card payments, triggering delinquency notices and a drop in her credit score. She arranges a catch-up plan with the issuer.
- A student loan falls 30 days past due, prompting Devon to contact the servicer for a revised payment schedule and avoid further delinquency.
- Taylor realizes maintaining on-time payments is crucial to preventing accounts from spiraling into collections or legal action.
Related terms
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