Slow payments are where the due date is missed on a debt payment. When we take out a loan or a credit card, part of the agreement is to make a payment on a given date. When we miss that date for any reason, it’s called a slow payment.
If you’re 30 or more days late, it will be noted on your credit report.
If you make the payment late but within 30 days, a note will be added but only you and the creditor can see it.
After 30 days and the slow payment will be visible to anyone who checks your credit report.
While there is no standard rule, a single slow payment over 30 days late can reduce your credit score by between 60 to 110 points. The higher your credit score, the higher the impact.
For example, we would typically see someone with a score of 680 see a hit of between 60 to 80 points for a slow payment. If you have a score of 780-800, you could see a hit of anything up to 110 points.
Different lenders handle it in different ways but you can definitely expect to see an impact on your credit score if you’re late making a payment.
A slow payment can stay on your credit report for anything up to 7 years so they are best avoided!
Can you still access credit?
If you have a slow payment marked on your credit report, you can still access credit but it might cost you a little more. Some lenders may not want to lend to you as a result so your pool of lenders might also be a little smaller.
However, work with credit experts like us and we can always find you a good deal!
We appreciate that sometimes life gets in the way. With the best will in the world, things can run away with you and you accidentally miss a payment or get into trouble through no fault of your own.
It happens. And we are here to help you if it happens to you.
Just because you have a slow payment on your credit report, doesn’t mean you don’t still need a car to get to work or pick the kids up from school.
That’s where we come in. We work with a wide range of lenders who deal with all kinds of situations. From bad credit car loans to standard loans with special conditions. Whatever your situation, whatever your circumstances, we can help.