Late Payments on a credit bureau can create a disaster when trying to get approved for a mortgage or car loan Calgary Alberta. Their are some important things to remember when it comes to late payments. When a creditor reports a 30 day late payment to a persons credit it usually means that the person was in fact 60 days late, in theory. When a 60 day late payment is reported, in theory, it means the payment was 90 days late, and a 90 day late being reported is usually 120 days late. For a creditor to report a 30 day late payment it means that the client was 1 full billing cycle late. This means that the client has not made a payment until the next bill comes in. This is very important to remember when looking at your credit report and wondering why late payments are showing. It is always advisable to make the minimum payment on time. Late payments can have a large affect on interest rate and approval conditions when dealing with mortgage approvals and car loan approvals Alberta. 90 day late payments have the largest affect on the credit score, when it comes to late payments showing. Late payments will always have the greatest affect once they hit. After they become 2 or 3 years old they will have less affect on the score, but will still have an affect on the overall approval. 9o day late payments can drop a score up to 50 points, depending on the persons score prior to the late payment showing. 60 day late payments will still have a great affect on the overall score, and will play a major part in the overall decision. 30 day late payments have a negative affect on the bureau as soon as they report and will have less affect as time goes on. Most lenders will understand that a mistake can be made, and will understand that people can “slip up”. What lenders wont excuse is a pattern of late payments. A pattern of late payments will show the next lender that the client is struggling with credit, and will more than likely approve at a higher rate. When applying for an auto loan Calgary, it would be a good idea to pull your own credit report and get all mistakes corrected, prior to applying. This may save you some money on interest rate, and gain a car loan approval with less conditions. If your bureau is showing 30 day late payments it might be advisable to call the creditor and ask for a “GWA” (good will adjustment). This GWA is when you call the creditor and ask them to remove a 30 day late payment from your bureau. This is not a right of the consumer, but more of a favour from the creditor. Not all creditors recognize this term, and not all creditors will do this.
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