Making late payments may tank your credit rating by about 100 points. Since on-time payments are one of those critical boosters of your credit score, defaulting can bite you.

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Delinquencies can drop your credit score by up to 100 points. Timely payments accounts for a huge part of your report, making defaulting a negative element. Defaulting may drop your credit rating further, and it can be worse if it's low.

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