How Will Late Car Payments Hurt My Credit Score?

Nov 19, 2020

Person holding a stethoscope on a credit card

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?

[ READ MORE: Tipsrnfor Saving Money While Staying at Home ]

Consequences of Late Payments

Woman checking her credit score

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

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

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

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

[ READ MORE: HowrnYou Can Shop for a Car Online ]

Financing for an Affordable Car in Central Florida

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