WHAT IS A LATE PAYMENT REALLY?

freedom6584 · ‎05-28-2008

I HAVE A CAR PAYMENT DUE ON THE 1ST OF THE MONTH, YET THEY GIVE ME TILL THE 15TH. IF I MAKE A PAYMENT ON THE 8TH IS THAT CONSIDER LATE, AND WILL THAT SHOW UP ON THE REPORT?

Anonymous · ‎05-28-2008

Every lender is different-

On my installment loans (mortgage and auto) my lender would not mark late or charge any late fees for paying inside of the "grace period"

freedom6584 wrote:

I HAVE A CAR PAYMENT DUE ON THE 1ST OF THE MONTH, YET THEY GIVE ME TILL THE 15TH. IF I MAKE A PAYMENT ON THE 8TH IS THAT CONSIDER LATE, AND WILL THAT SHOW UP ON THE REPORT?

Anonymous · ‎05-28-2008

If your payment is due on the first, then technically any payment made after that date is late. Your finance company gives you a grace period that allows you a couple of weeks before a late charge is assessed. However, payments made within 30 days of the due date are generally reported as on time. Just don't make a payment on the 31st!

llecs · ‎05-28-2008

I was up to 2 months late on a car note. Prior to August, I didn't car about credit and that included paying on time. Anyway, been always on time since, but there's not a single late listed on my CR for that account. Many a time, I was late (nearly every month).

Anonymous · ‎05-28-2008

LOL you must not have financed with Ford Motor Credit! Good Job staying on time!

LIGHTNIN · ‎05-28-2008

Like timothy said"every lender different"

IMO,call your lender.DH had a auto loan with suntrust due on the 1st grace period till
the 15th.Did not know till almost the end of the loan,that if I paid after the 1st
they were charging interest,for every day after the 1st till I paid.

So at the end of the loan, was all the extra interest.

I would call your lender, if i were you.Just to be on the safe side.

let us know what you find out.Just might help others who are reading.

BTW, good question.

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Anonymous · ‎05-28-2008

This is true- they can add daily interest

My Auto is at 0%- so that is OK-

My Mortgage is daily- so I try to pay it early-

LIGHTNIN wrote:
Like timothy said"every lender different"

IMO,call your lender.DH had a auto loan with suntrust due on the 1st grace period till
the 15th.Did not know till almost the end of the loan,that if I paid after the 1st
they were charging interest,for every day after the 1st till I paid.

So at the end of the loan, was all the extra interest.

I would call your lender, if i were you.Just to be on the safe side.

let us know what you find out.Just might help others who are reading.

BTW, good question.

Schoolbuskid · ‎05-28-2008

Like its been said most companies allow a grace period, and most report you late if its more than 30 days. You need to call and talk to your finance company to understand their terms better! Good Luck!

Rebuilding and Reducing Debt, is my game plan.

Anonymous · ‎05-28-2008

I have a perfect example of the "grace period" being a big money hole..

DH's old car, at 18.99% int... it was one of those bad credit specials, the dealership knew he was military & approved him for special military financing w/ HSBC.. as long as you signed up for an allotment, you were covered. When he set up the allotment, it showed the due date as the 1st of each month. So, he set up the allotment for that date. However, when the $$ comes out as an allotment on the 1st, then DFAS actually sends an electronic check to the account you've set up, which adds 2 days minimum for receiving time, and then 2-3 days processing time at HSBC. Every month, his payment was being received 5-7 days AFTER the 1st, with daily int being calculated.

He never knew. NEVER. Never even noticed. Then, we got married & I started looking at the statements.. I couldnt' figure out why the am't paid to interest would fluctuate so much from month-to-month. Some months it was as high as 26.8%!! The lowest it ever was, exactly 18.99% in February. Also, he had only 1 yr left on a 5-yr loan and more than half his payments were still going towards interest, it really caught my eye and bothered me. That's when I finally found out about interest compounding daily, and how HSBC took advantage of that in this "military special" financing deal. Had he paid by bankcard every month, or even set up payment from his bank account, it would have been faster and he would have paid much less in interest.

Once it was set on allotment, he never opened a single statement.. just figured it was taken care of. Ugh.