Educational Loan

Reggie -

if your sister is behind on her credit card bills by more than 30 days, it is definitely going to show up negatively on her credit report, and will have an effect on any credit or loan she tries to obtain. How much it affects it will depend on the severity of the delinquincies shown on her credit report.

If she has been consistently late over the course of several months or a year, on all of her accounts, it's going to have an impact on her ability to obtain credit or a loan.

Well she was never late on her payments but she wasn't able to make the minimum payments. SHe always paid something. She has roughly about $2k in debt.

No creditor will appreciate you paying less than the minimum amount. Late fees and interests will keep adding on the principal amount. Verify with your creditors if they have already reported your file to the bureaus. At this stage, they will only report derogative item on your file because of the status your account is in. If you can pay off the debt at the earliest, you may negotiate with them for a fair reporting.

Your most important concern is to eliminate this debt at the earliest. Take help from someone in your family or friends if they can pull you out from this mess. You may also consult a debt counselor for negotiating with your credit company. They will fix up an affordable repayment plan at lower interest rate. In this program, most of the late payment fees are waived off. So, this will also help in bringing down the total debt amount.