How do late or on-time car payments affect your credit?
Here at J.D. Byrider, we know that life can get crazy sometimes, and that can make an impact on your credit score. There are a number of different ways your credit score can be lowered, including losing your job and your income, incurring unexpected medical costs, and any number of other reasons. We are able to work with you even if you have poor credit, and we want to talk about one particular way your credit score can go up or down, and that is with car payments. Typically, when you buy a vehicle, you do not pay the entire cost right away. Instead, you make a down payment and finance the rest, making monthly payments over a period of time to finish paying for the car. What happens if you cannot make a payment when you’re supposed to? How do late or on-time car payments affect your credit?
Late payments could possibly lower your credit score. It can depend on the situation. If you happen to forget to make a payment, it is important to remedy that as quickly as possible and make arrangements for making the payment. The loan may have a few days’ grace period where it is okay to be a little late, but don’t bank on that. If you have extenuating circumstances or your financial situation has changed, it is important to talk to your lender right away about what has happened, and be completely open and honest about the situation. It is possible to rework the financing so you are able to have a payment plan that works for you.
If you are weeks or months late on your car payments, that can be reported to the credit bureau and lower your credit score. Typically, if you have a higher credit score, your missed payments would have a larger impact on how many points your credit score would drop.
How can you get your credit score back up with used car financing?
It is vital to make your car payments on time if you want to boost or maintain your credit score. If you finance with J.D. Byrider, we can arrange for you to get behind the wheel of a pre-owned automobile you’ll love and can afford. We can work with you no matter your credit history, and we report your payments to the credit bureau, so making them on time will help you out.
If you would like to get started on this process with J.D. Byrider, contact us today!
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