By Ken Stoll

It may seem innocent enough, but one single missed mortgage payment can have a big negative impact on your credit score. You might be shocked when you see how large the drop can be.

When you are deciding which bills to pay first this month you should always pay your mortgage. Not only does it keep the roof over your head and protect your number one investment, but it protects your credit score.

The negative effect of a missed mortgage payment can be quite significant and very, very costly. According to a recent report, if you are behind with your mortgage payment by as much as 30 days, your credit score can tumble as much as 100 points or more for a period as long as twelve months after your account becomes current.

                                      

This lower credit score will cost you in the form of higher interest rates and maybe even a complete decline on any new loans or credit you apply for during that period. The reduced credit score could also come back to bite you through increased insurance premiums.

Additionally, the mortgage payment that you missed is now twice as difficult to pay next month when you must make the current month’s payment and last month’s payment in the same 30 days. This can easily snowball and lead to serious consequences including foreclosure.

Paying your mortgage on time each month is important for your financial health and it ensures your credit score does not needlessly deteriorate.