There are many reasons why people fall behind on bills, and many of them are no fault of borrowers. Unfortunately, however, creditors throughout the state of Florida and beyond are typically unconcerned about why people fail to pay off debts or how small those debts actually are. Understanding how and why delinquent payments can impact people’s credit ratings is important to preventing serious credit issues in the future.
A major problem for many people is that they are not familiar with the information listed on their credit reports, and therefore do not know when negative actions appear. Everything from unpaid credit cards to medical expenses can appear on a credit report, and sometimes a credit rating may reflect inaccurate information. A person’s payment history is the most significant factor in determining his or her credit score, so it’s worth checking that one’s credit report is accurate and ding-free.