During this year’s Christmas shopping season, I made some large in-person transactions at the same time as my wife made an online transaction, and my credit card was suspended by the issuing bank for potential fraudulent activity.
This happens relatively often, whenever someone’s spending patterns are flagged by the neural-network based automated fraud detection used by all the major credit card issuers.
If your credit score is low, it indicates that you are more likely to make late payments or file costly insurance claims.
In turn, this means the creditor is more likely to lose their investment by lending you money.
This post all started because I did it in a live TV Segment (watch that HERE), and it went viral since then (it was even featured on Life Hacker)!
Plus, it inspired me to create a budgeting program surrounding the strategies that pulled us out of our financial disaster – Budget Bootcamp!
After all, it’s the However, they could just as easily have broken into the servers of a brick-and-mortar store — it’s not the fact that you used the card online that makes it possible for them to steal it, it would have been just as at risk handing it to a cashier.If 30- or 60-day late payments are an infrequent occurrence, they shouldn’t cause lasting damage to your credit score unless they are recent (last two years or so) or occur on a regular basis.In this case, the fact that you are habitually late with your payments can cause long-term damage to your credit scores.In the complicated world of credit scores there is one fact pretty much everyone assumes is true: Late payments are bad for your credit scores.After all, negative information like late payments can stay on your credit reports for up to seven years, so the first sign of a late payment on your Financial institutions, insurance companies and utility companies use credit scores as a way to predict how risky a customer you will be.