If you’ve missed your mortgage payment, there’s no need to panic just yet. Whether this was due to your financial circumstances or simply because you forgot the payment date, it’s a common occurrence. However, the biggest question many people have on their minds afterward is: are there repercussions for being late on a mortgage payment? We’ve put together everything you need to know about how a late mortgage payment may impact your credit score.
The Impact On Your Credit Score
The impact of a late payment on your credit score depends on multiple factors such as the type of credit score you have and your credit history. Here are some things that may happen as a result of late payment:
• A late payment could stay on your credit history for up to seven years, and during that time, will impact your credit score and your ability to take out other loans or credit.
• If you have a good credit history and have worked hard to maintain it, then a late payment will cause your well-earned credit score to drop. However, it’s important to note that missing multiple payments will have a bigger impact than just forgetting to pay one.
As time passes by, the impact of your late payment on your credit will begin to fade, as long as the rest of your payments are made on time. You might even begin to see your credit score slowly bounce back to where it was before you made a late payment.
When Are Late Mortgage Payments Visible On Your Credit?
If you’ve gone 30 days past the deadline, your late mortgage payment will appear on your credit history. Some mortgage companies will have penalties if you’re late by even one day, but that won’t harm your credit score as long as the payment is made by the 30-day mark.
Is There A Grace Period For Mortgage Payments?
This varies significantly from lender to lender, but generally, the grace period is approximately 15 days from the due date. If, for example, your mortgage is due on the first of every month, you’ll have until the 16th of that month to make your mortgage payment.
Ways You Can Avoid Making Late Mortgage Payments
1. Set reminders: If you feel like you’re going to forget, then we recommend putting a reminder on your phone ahead of your mortgage due date.
2. Set up automatic payments: To be on the safe side, you can set up automatic payments so your mortgage comes out of your bank account on the same day each month. However, you’ll need to ensure you have enough money in your bank for this to work.
3. Track your mortgage: Download your lender’s app (if they have one), so that you can keep track of your mortgage payments.
4. Don’t be afraid to ask for help: If you’re late making a payment and feel like it’s likely to happen again, then take a look at some mortgage relief programs to learn more about your options.
To discuss your mortgage options at length, feel free to get in touch with our expert and friendly team at First Lenders. We look forward to helping you with all your mortgage needs.