 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: How to Never Miss a Payment\n---------------------------\nAfter you apply for and obtain a credit product, the lender typically reports your payment history to one or more of the three major credit reporting agencies—Experian, TransUnion and Equifax. Credit scoring companies then produce credit scores based on that info. Scores calculated by [FICO® and VantageScore®]('), the most common credit scoring companies, range from 300 to 850, with higher numbers predicting lower credit risk. Because payment history is the most important factor in these scores, even one missed payment cycle can harm your credit.\nAvoiding late payments is always best, and there are a number of effective strategies you can employ:\n*   **Add due dates to your personal calendar.** Making a note of the due dates for all your bills can help you stay on track each month. Each time you look at your calendar, you'll have a visual prompt.\n*   **Choose the right account manager.** Live with a partner? The person responsible for bill payment should have good organizational skills. If that's not you, let your partner take over. Stay in the loop, though, by checking your accounts periodically and make sure you're not overspending.\n*   **Make account management a routine.** Decide on a day and time to review bills. For example, you may choose every Friday morning before work to pull out all of your statements and pay what needs to be settled up. If you make a weekly habit out of it, you won't have to deal with bills that pile up.\n*   **Set alerts and reminders.** Upon request, most financial institutions will send you text alerts or emails to remind you of upcoming due dates. Those incoming messages won't allow you to forget to pay! Alternatively, set up reminders on your phone or computer for times when you're typically free and handle your bill-paying right then.\n*   **Enroll in automatic payments.** Almost all banks and credit unions give you the option to set up automatic bill pay. The online bill payment system allows you to select the amount you want to pay a creditor on a certain date. That sum will be deducted from your checking account, then sent to the creditor on time. This works perfectly for loans because the payment is fixed, and can also be ideal for credit cards. Autopay features on a credit card often let you choose to pay just the minimum payment due, the full balance or a custom amount.\n*   **Use a third party.** If you don't have the time and wherewithal for account management, hiring a service can make sense. Professional daily money managers help people do everything from pay bills to organize documents. If you really need assistance and can afford the typically hefty fees, they're worth checking out. END