What happens if late on car payment

Depending on your lender, you may have a late car payment grace period, which is typically around 10 days. But, your creditor has the right to assess a late fee immediately following the missed payment. Not only do you end up paying more late fees on top of the monthly payment, but you also put yourself at risk of missing more payments in the future. The trick is to find a strategy that works for you. Here are three simple ways to get in the habit of making your monthly car payments on time :.

When you miss a car payment, you become subject to late fees and repossession. Repossession and late payments stay on your credit reports for up to seven years, and you may run into some issues if you plan on financing in the near future. Another thing to consider is if you have a cosigner on the auto loan. One missed payment could mean a repossession or a big hit to your credit score. With our simple auto loan request form and our nationwide network of dealerships that know how to handle unique credit situations, we want to connect you to a local dealer that can help you get the financing you need.

Get your credit score now! Get a copy of your most recent credit report too. Protect your vehicle and you could save hundreds or thousands on auto repairs. You have options to handle a missed payment, and your lender will likely work with you to find a solution. If you simply overlooked the payment but can cover it, great. Skip ahead to Step 2. Know your loan details: Make sure you understand your loan balance, interest rate and term how long the loan runs.

Know what you can pay: Review your budget to see if you can trim any expenses so you can put more toward your loan payment. Try to pull together some extra cash. Think about whether this is one tight month or if your car payment is an ongoing problem. How you proceed depends on whether your missed payment is a one-time issue or a sign that your loan is unaffordable.

For a payment you simply forgot to make, call the lender to make the payment as soon as you can. You may have to pay a late fee for missing the due date.

In the future, you may want to consider setting up automatic payments to avoid missing the payment again. One-time late payment: Loan deferment is a common solution for an isolated missed payment. It is always wise to call your lender immediately when you know you can't make your payments on time.

Your lender may offer a grace period on your car loan. That means you have some extra time before any late fees are assessed. They may be able to temporarily lower or postpone payments. Keep in mind that once your payment is 30 days past due, your lender will report your account to credit bureaus as delinquent, which can hurt your credit score. If you can no longer make payments, you have a few options. One option is refinancing your vehicle so you have lower, more affordable payments.

Talk to different lenders to see which one provides you with the lowest interest rate and monthly payment. Another option is to sell your car. Check online to get a sense of how much your car is worth and then compare it to how much you owe.