Final answer:
A borrower should make payments within the grace period to avoid late payments being reported to a credit bureau. Timely payments maintain a good credit score and ensure creditworthiness.
Step-by-step explanation:
To avoid having late payments reported to a credit bureau, a borrower must make a payment within the grace period. Late payments can negatively impact a borrower's credit score. By ensuring timely payments, and possibly during the grace period offered by many credit lenders, a borrower maintains their creditworthiness. Another option for a borrower to reassure a bank regarding repayment is by having a record of high profits if the borrower is a firm, which might indicate the capability to repay a loan. Moreover, making payments quickly helps to minimize the interest accrued on any outstanding balance, effectively reducing the overall amount paid in the long run.
Requesting an extension for payment or simply paying the late fee may temporarily address the issue at hand, but won't necessarily prevent late payments from being reported. It's also important to understand that updating a credit report will not prevent the reporting of late payments, since the credit report reflects payment history rather than influencing it.