Hi folks! Still hanging in there? And by in there I mean indoors! It’s funny cuz it’s very true.

So…this week being what it is, an interesting topic has come up repeatedly. You get zero guesses but here’s my answer:

For as long as I have worked in finance & credit, making a credit payment of less than the minimum balance or more than 30 days after the original due date came with the immediate risk of a credit update showing those allowed to peek that you are in arrears. Many banks and other creditors routinely delay the process of reporting the initial late payment by an extra 30 or even 60 days but rarely longer. This means making a verbal arrangement to pay less than the usual and making or even exceeding the arranged payment will still result in a credit report showing a delinquency. Basically, you could say the higher your interest rate on a balance owing, the less inclined the lender was to lend to you in the first place so they WILL act to prevent default. This means you may wonder how dare they ask you to pay when you may not feel your strongest. If you are suffering, your creditor is compassionate however, they may be suffering as well. Many finance companies, department stores and many iconic brands have closed in recent years.

In summary, make a late creditor payment, even if they said it was ok, don’t be surprised if your trade line reflects a default of the original terms of the credit piece.

Will mortgage renewals be as easy to negotiate favourably? We know you do NOT want to “settle” an unsecured consumer debt with the same bank that holds your mortgage. This news is old and well tested. Don’t do it. Other creditors – yes often but that’s talk for a different thread.

Will prospective employers who use a credit report glance as part of their pre-hire due diligence adjust their risk exposure? Remember that when a company hires an employee with debts in collections, the employers staff often get stuck fielding the calls asking to verify employment. I think an educated employer would want to avoid expending their resources in this way by choosing best credit history.

VIDEO: What to do if you`ve been denied credit

Helpful Links:

Ten things that won`t hurt your credit*

Identity Theft Education

What happens when I settle overdue debt?

Free Equifax Credit Report – Canada Call 1-800-465-7166

Credit Update Form

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