Late payments are payments made after a specific
due date. Here are some points to keep in mind with regard
to late payments.
Notify The Creditor If You Expect To Be Late
While it’s human nature to avoid those people who are
calling you with demands for payment, it’s best to be
proactive. Most lenders will allow you to make a partial payment
or to put off a payment, if you’ve taken the initiative
to call the creditor.
Some lenders may request that you pay the interest due, and
move the Principal to the end of the loan.
Consider Alternative Ways To Make Your Payment
Remember that most lenders report your payment practices to
the major credit
reporting agencies. Late payments lower your beacon
score and make it more difficult to obtain credit in the
future. A cash advance or a loan from family members or friends
could be a small price to pay for an on-time payment. Weigh
the cost of late payment fees and the impact to your credit
score against the cost of a cash advance or personal loan,
and remember that those options should be short-term occasional
solutions rather than a lifestyle.
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