Damaging your credit score is about as bad as burning up all the cash in your wallet, according to CNN Money. If your credit score tanks, you are going to pay high interest rates if you can get a loan at all. Missing a credit card payment can do a lot of damage to your credit score.
Significance
Your credit score ranges from 300, which is the worst, to 850, which is the best. Many factors determine your credit score. Paying your bills on time, how much you owe on your bills and the length of time you have had credit are all factors.
Effects
The fastest and easiest way to lower you credit score is to skip payments on your bills or to become delinquent altogether. Your payment history comprises 35 percent of your credit score. If you fail to make the minimum payment on your credit card within 30 days of the due date, your credit score could plummet, says Craig Watts, spokesperson for Fair Isaac, on CNN Money. Fair Isaac, also called FICO, is the scoring model the credit reporting agencies use.
Considerations
Your credit score falls faster than it rises. For example, if you had a high credit score, but missed a credit card payment, your score could drop 100 points. You can make up the 100 points, but it takes much longer to make them up than it took them to fall.
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