Ok so I just entered the wonderful world of credit a couple months ago after realizing I need to establish my history at a young age (19). I purchased a tv through a retail store and I have been making payments online. I have made 5 payments so far with the 5th being today. I made the 5th payment today on its due date. I just learned that making the payment today, since it will not post for 48 hours, will make it late. There is a 40 dollar late fee I understand, but my question is, how badly will this 48 hour difference make to my credit score, which is what I am most concerned about. Sorry if there are typos , I am at work
If the lender follows the law and reports accurately, 48 hours late should NOT result in a report of late payment on your credit reports. The CRAs report amounts late as "30 days late", "60 days late", etc, and there is not even any payment history coding for "2 days late". Although there have been companies that report payments even a day late negatively to the CRAs, if it shows on your reports as "30 days late", when it was in reality only 2 days late, it is being reported erroneously. You would dispute the error thru the CRA showing it, and if "verified", file complaints with your state AG, and consider suing. Most retail credit is usually thru other lenders, often banks with CC operations, and not financed by the store itself. $40 is a steep late fee for normal CC accounts. What was the original purchase balance? What were the terms of the loan? Are there additional charges for paying online? Who is the actual lender?
