What Happens If I Accidentally Miss a Car Loan Payment?

Accidentally missing a car loan payment, or any payment for that matter, can be a panic-inducing moment. Here’s what you need to know if this happens, and how to prevent it from happening again.

Possible Repercussions of Missing a Loan Payment

• Negative impact on your credit score
• Late fee
• Interest rate could rise
• Can potentially stay on your credit report for up to 7 years

We don’t mean to scare you with all of this, but even a single late payment can negatively impact your life much more than you might think—and for a longer amount of time than anticipated, too. Make sure you are prepared to get that new car by taking some precautions against late payments.

Read More: Reasons Why My Engine Light Turned On

Things I Can Do To Prevent Accidentally Missing a Payment

• Automatic withdrawal is a great way to not miss a payment. Not
  everyone does it of course, but it may be helpful to look into it, and not
  only for car loan payments!
• Reminders on your phone might be annoying, but they can help you
  remember to pay your bills on time.
• Have a day dedicated to just your finances. Seriously. If you set one or
  two days aside each month to just reevaluate your finances, it can help
  you stay on top of those bills.
• Organization! Don’t have a messy office with a bunch of papers
  scattered around. Take the time to organize your information into some
  folders, and store them in an easily-accessible box or drawer.

Can I still buy a car with bad credit?

Fortunately, you’ll still be able to get a vehicle even if you have bad credit. Finding the right used car dealership may be more difficult, but it can be done.

You’ll be able to get a car even with a bad credit score right here at Ottobot Motors. Feel free to contact us if you would like more information on this easy process.

Frequently Asked Questions

How long can I go with a missing car payment?

It’s best not to miss any car payments, as just one missed payment can seriously impact your credit score for up to seven years. This can cost you through increased interest rates on future loans. Though lenders might work with you, even one missed car payment can be grounds for a repossession, and every moment you wait after the payment will increase the chances that your car will be repossessed.

Will missing a car payment hurt my credit?

Yes, missing a car payment will hurt your credit score, and the impact of it can remain on your credit report for up to seven years. Missing a car payment is one of the easiest ways to lower your credit score, and worse still, missed car payments can cause your auto loan’s interest rate to rise, costing you more money in the long run. Missing a car payment can also incur late fees.

Will my car be repossessed if I miss one payment?

Your car’s at risk if you miss even one payment, but repossessions in Irving, TX, typically occur after two to three missed payments. If you owe on an auto loan, you don’t own the car outright, so not paying back the loan is essentially theft. Even without a repossession, missing one car payment can severely damage your credit score for years, making it more difficult to get another auto loan.

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