How Will Late Car Payments Hurt My Credit Score? | OK Carz

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When Will Late Payments Be Reported to Credit Bureaus?

With financial uncertainty surrounding the lives of millions of Americans, people across the US are wondering how they can pay their bills. For many, making payments on vehicles are at the top of their minds. How will late car payments hurt my credit score? When will late payments be reported to credit bureaus?

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Consequences of Late Payments

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Unfortunately, making one late payment can hit your credit score hard. In addition to loss of credit, consequences of late payments you can encounter include:

  • Late fees are added
  • Potentially a raise in APR
  • You will be behind for the next month(s) until you come up with enough cash to catch up
  • Late payment will be listed on your credit report that can stay for up to seven years

Thankfully, there is a way to avoid getting your late payment reported to credit bureaus. Legally, late payments cannot be reported to credit bureaus until you are 30 days late. While you may not avoid the additional late fees and increase in interest, paying off that late payment before it is 30 days overdue can save your credit score.

Also, if you never missed a payment before and have a long history of paying on time, some lenders will even waive the fee and interest increase for a one-time occurrence. It never hurts to ask.

[ READ MORE: How You Can Shop for a Car Online ]

Financing for an Affordable Car in Central Florida

Here at OkCarz, we understand that everyone makes mistakes. Even if you have bad credit, we are willing to work with you to help you find an affordable and reliable car. Going through some tough times due to COVID-19? Let’s work it out. To reach out to us online, send us your contact information and your request for assistance using the form on the bottom of this page. We will get in touch with you and discuss some options so you can finance for a vehicle at a price you can afford.

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