Posted on: 29th Oct, 2009 08:32 am
I'm in the process of a loan mod, but in order for the bank to pay any attention I had to skip this months payment. I already send all the info and I know it will take some time. My concern is that i'm in the process of purchasing a car and i'm worried that the late payment will appear on my credit report and therefore not get a good APR. How soon will this appear on my credit?
it won't take long, that's for sure. so you think that intentionally paying a payment late will get their attention? you're right, but it's not going to do you any good in your efforts to buy a car and pay a decent rate.
Most creditors will report within 30 days some longer. Did you try refinancing first? Skipping payments will hurt your credit and will not guarantee that the bank will modify your current loan.
how bad would skipping payment hurt my credit?
Hi juanita,
It depends on your particular situation how badly your late payments will affect your credit. A single missed payment can affect your credit by 20-50 points. Depending on your situation, the effect could be more or less.
It depends on your particular situation how badly your late payments will affect your credit. A single missed payment can affect your credit by 20-50 points. Depending on your situation, the effect could be more or less.
Every missed payment counts and then it lingers there in the derogatory section. These are mortgage lates and the weigh heavily on your credit and further credit approval in the future. Did you know that creditors have the right to keep items on your report for up to 7 years after the account CLOSES?? As time goes on it has less impact on your scores but for example FHA may require up to 24 months of no late payments , it really may put you behind the eight ball.