What Happens If I Miss a Car Loan Payment?
Falling behind on finances and payments can be easy and playing catch up can seem like it goes on forever. But what will happen if you miss a car loan payment and how will it affect your credit? This is everything you need to know about what will happen if your car loan payment slips your mind.
Read more: Common Mistakes Made While Car Shopping
Effects of a Missed Car Payment
Whether you intentionally skipped a payment on your car loans during a particularly tight month or you simply forgot to make your payment, missing a car loan payment can land you with a few consequences. Some of the potential effects of a missed car payment include:
- Late fees
- Negative impact on your credit score and payment history
- You’ll continue to be a month behind on payments until you make up the missed payment
- Increase in interest rate
- Lasting mark on your credit report for up to seven years
Missing a car loan payment can cause more negative effects than simply having to pay more the following month. If you find yourself having to skip a month’s payment or having forgotten to pay, many lenders will forgive one late payment if you have a good financial history with them of on-time payments.
Can I Still Get a Car Loan with a Bad Credit History?
Some financial institutions will make getting a car loan difficult if you come in with a bad credit history. At Auto Simple we make loan approval easy no matter what financial history you come in with. You can apply for credit pre-approval right on our website to get started on your way towards a personalized financial package to help with the purchase of your next vehicle from Auto Simple.
Check out our online inventory to see what vehicles you can get when you shop at Auto Simple in Chattanooga, TN.