Avoid The Pitfalls Of Making Your Car Payment Late

When you signed the loan contract for your vehicle, one of the terms of your agreement was that you would make your payments on time. Many people fail to realize that just one missed payment can have a significant affect on your finances.

Payment History

When it comes to getting credit, your debt-to-income ratio is important. However, lenders are also curious as to whether or not you pay your bills on time. Once your payment has reached 30 days past due, it gets reported to the credit bureaus. Missing even a single payment is enough to affect your payment history, negatively.

This is especially true if the late payment is recent. According to a study, an individual with a credit rating of 780 or higher could experience as much as a 110 point drop with just one recent late payment. A drop this large can have a significant impact on what future credit options are available to you.

Before you Miss a Payment

As the due date for your payment gets closer and you realize you won't have the money to cover the cost, don't wait around. It's a good idea to seek out different options to ensure you don't miss your payment. There are loan services available that can lend you the money you need to make your payment on time.

These lenders will work with you to find an interest rate and loan term that will fit within your budget. Only have a few days until your payment is due? No worries. Many of these lenders, such as Las Vegas Finance, offer fast cash loans that can get you the money you need in very little time.

Helpful Saving Tips

In many cases, people don't fall behind because of negligence. An unforeseen emergency or event is generally the culprit. Here are a couple of tips to help you save money.

Bank savings program—Most large banks have savings programs that allow you to round up all your debit card charges to the nearest dollar. This additional amount is then deposited into an interest earning savings account. If you use your bank card regularly, you could save a considerable amount.

Pay yourself—Instead of paying your bills and counting any leftover money as your own, pay yourself. Consider how much money you need to take care of yourself for an entire week. Budget in fuel, food and other personal needs. Deduct this amount to pay yourself. Any leftover money can be stashed away in a savings account.

When you look at the big picture, you can't afford to pay your car payment late. Make certain you're always paying on time.


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