What is the impact of a missed payment on my credit score during the billing cycle?

A missed payment during the billing cycle can have a negative impact on your credit score. Here's how it works:

1. Payment History: Your payment history is a significant factor in determining your credit score. It accounts for about 35% of your FICO® Score, which is a commonly used credit scoring model. When you miss a payment, it gets reported to the credit bureaus, and it can lower your credit score.

2. Timeliness of Payments: Credit scoring models consider whether you make your payments on time. If you miss a payment during the billing cycle, it will be reflected in your payment history as a late payment, and it can stay on your credit report for up to seven years.

3. Severity of Late Payment: The impact of a missed payment on your credit score may depend on how severe it is. For example, a payment that is just a few days late may have a milder impact compared to a payment that is significantly overdue or goes into collections.

4. Credit Score Calculation: The exact impact on your credit score will depend on various factors, including the scoring model used and your overall credit history. Generally, the more recent and frequent the late payments, the more significant the impact on your credit score.

5. Potential Credit Score Drop: A missed payment can result in a drop in your credit score, and the exact amount can vary based on individual circumstances. The higher your credit score was before the missed payment, the more significant the potential impact may be.

To protect your credit score, it's crucial to make your payments on time and in full. If you do miss a payment, it's best to make the payment as soon as possible to minimize the negative impact on your credit score. It's also essential to communicate with your creditor or lender if you anticipate difficulty making a payment, as they may be able to provide assistance or offer alternative arrangements.