Falling behind on bills damages your credit, and the later your payment is, the worse things get. If it has been 90 days or more since your last payment, your lender may have sent your account to collections.
The collections account then appears as a tradeline on your credit reports, which shows potential lenders that you are past due on your payments. This is a red flag to many lenders, which check your credit during the application process to assess whether you will be able to repay what you borrow….

