Knowing who to pay late, in advance of meeting with a financial crises, is very important to the maintenance of clean credit reports and rebuilding one. In some credit reports like TRW, there is a column provided for recording your Manner of Payment. It will list what you last 12 months of payment activity has been. A "C" on your TRW means that you are current. A straight line of "C"s look great, but a "1' means you were 30 days late, a "2" means you were 60 days late, a "3" stands for 90 days, and so forth in 30 day increments.
"Strategy in paying someone late is to pay someone who doesn't report"
| ACCOUNT NAME | MONTH | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MASTER CARD PAID AS AGREED | C | C | C | C | C | C | C | C | C | C | C | C |
| SEARS CURRENT WAS 30 ( ) 60 ( ) 90 (5) | C | C | 3 | 3 | 3 | 3 | 3 | C | C | C | C | C |
| VISA 30(2) 60(2) 90(1) | C | 1 | C | C | C | 2 | 3 | 2 | 1 | C | C | C |
Credit card companies usually report your manner of payment every month. People will usually pay a credit card late versus a house payment for fear of losing their home, whereas the worst a credit card company could do is garnish some of your wages. Since this is true, prospective creditors can see in advance if you are about to go under or are already buried in debt. The sensible action to take would be to consider if you are short on cash and your credit card payments are current, but you need some money to pull your house out of foreclosure, the creditor is more likely to give you a new loan. He does not know your home is in foreclosure by reading your credit report because some mortgage companies do not report. Note; You can still maintain an A-1 credit rating by contacting your creditors and tell them, in advance, why your payment will be late.
