Missed my car payment for the first time

[Dan]

I won’t be able to make my current payment until next month, which means I will be late 30 days. I know that it’s bad for my credit. My question is just how much is it bad, how long will it affect my credit score and is there anything I can do to change this?

[Tracy Winters]

Try to get a 2 month deferment

Being late on a car payment, even just once can lower your credit score by 60 – 100 points, depending on how high your score was prior to this (See late-payments.html). If you miss payments by 60 days or more, the impact is even larger.

Late payments remain on your credit report for 7-1/2 years, but their impact on your credit score diminishes with time. After 2 years they have a lesser effect on your score.

You have two options to keep this from happening:

1. You can try asking the lender if they’re willing to waive the payment for the month and tack this month’s payment onto the end of the note. Some lenders may be willing to do this “one time” through the life of the loan.
2. If you’re still under 30 days late, try asking for a 2 month deferment. Tell them you need it because of unexpected medical expenses not covered by your insurance. It may work.

In any case, make sure not to pass the 60 days late, because it will have a significantly larger effect on your score, plus no creditor will waive a late payment if it’s over 30 days.

[Author]

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