If you pay attention to your credit
rating, you may be well aware that a single late payment reflected on your
credit report can result in a decline in your scores.
In some cases, the decline can be
rather significant, and you will have to work hard to make regular payments
over a period of time to show that you remain creditworthy and to rebuild your
credit score.
It is far better to avoid late
payments altogether than to deal with the stress and ramifications of a late
payment on your credit report. If you have already missed the due date on your
mortgage loan, you may be wondering what you can do to prevent this late
payment from showing up on your credit report.
Contact Your Mortgage Company
Immediately
Initially, contact your mortgage
company to make payment arrangements and to discuss the situation. In some
cases, a mortgage company may be willing to work with you on structuring a new
arrangement for the payment to be made or you may even have a surplus in your
escrow account that could be applied toward the payment.
You can also determine when they
will report your late payment to the credit bureaus and how much time you have
before you absolutely need to make the payment to avoid credit ramifications.
Make Your Payment Before The Next
One Is Due
Generally, lenders will report late
payments when they are more than 30 days late. While you may be assessed a late
fee after the initial grace period has expired, you may not have technical late
payment in terms of what credit reporting bureaus consider to be late.
Generally, if you make your payment before the next mortgage payment is due,
your late payment will not show up as a late payment with the bureaus. However,
you do want to verify this with your mortgage company and work with them to
bring your account current.
A late payment on a mortgage can
have a substantial and negative impact on your credit rating, and it can take
months or even years to restore your scores to their previous level. Rather
than go through the effort to try to improve your score after the fact, it is
best to avoid the late payment altogether. While you may have already missed a
payment and may be required to pay a late fee, it may not be too late to avoid
having this event reflected on your credit report.
Contact your lender today to learn
more about your options and to make your payment.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.