Late Payments?

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  • #62795
    HopefulThisYear
    Participant

    I’ve been scheduled for my first intake meeting in a month and I am already nervous. I am concerned about how the late payments will affect getting qualified. I have never been 30 days late on any bill; therefore, my credit report reflects all payments on time. However,I must admit that I have been a couple days late on credit cards payments. When looking at late credit card payments, do they matter if they aren’t reported? Will the specific dates paid be looked at or is it the late fees that will be a concern. I currently have two late fees, one this year and last. If I asked my credit card company, is it likely they’d remove them? I ask because I’ve never done so.

    Also, of more concern is my rent. I have ALWAYS been on time with the rent because it’s on auto draft. Well this past June, the automated system stopped my payment information without my knowledge and I got a letter notification on the 6th day from my leasing agent that my rent was late. I expressed that this was a surprise to me and paid it that same day. My lease ends in July and I am hoping to purchase a home at that time but I know they look at 12-24 months of payments and this surely didn’t occur because I couldn’t pay it.


    @TTRUMBLE
    I’d really like to hear your input as well.

    Thanks ahead of time!

    #62796
    Nelsont
    Member

    You are either late or you’re not. When you say you’re late do you mean you did not pay on the actual due date? Because there is usually a grace period like if your bill is due on the first and you pay on the 2nd it won’t be reported to the credit bureaus as late.

    As far as being reported yes it does matter. First you will need to show your statements. Your statements will show when your payment went through and whether or not it was late. 2nd your late payments will show up on your credit report but not for another month or 2 after it happens. The fees are not the issue. It’s the ability to pay your bills on time.

    Just remember this: A $10 bill paid 1 week late with no late charges carries the exact same weight on the qualification scale as completely missing a rent payment and incurring a say 20% late fee. Essentially they want you to be perfect for a period of time unless you can prove hardship.

    Unfortunately I think your issue with rent automatic debit might be a problem. I think the onus is on all of us to stay on top of our finances so when your grace period was approaching and you hadn’t noticed your rent being deducted you should have done something about it. I think that’s the stance they will take – that whether you actually pay your bills or have them automatically dedcuted you should always pay attention to it because not worrying and just assuming is indicative of poor financial habits. If it turns out to be OK you will more than likely need to get your leasing office to write a letter explaining the situation. That’s just my take on it.

    #62798
    clevelar
    Member

    Your counselor is not going to look through your bank statements to check the dates that you made payments on, think about it. You can make a payment and it not be debited from the account until days later. However, they will look at your statements and if your statement shows a late fee added onto (even if subsequently refunded as a courtesy by the cc company) they’ll know you were late on it. Your rent is a big problem. You need 12 months with no lates, no exceptions.

    #62801
    Nelsont
    Member

    @clevelar

    My MC did…they actually took a highlighter and highlighted each payment date on every single piece of paper I had.

    Also if you pay online and elect debit as opposed to credit or e-check and select same day your payment goes through that day and is listed on your statement that day. If you select credit or e-check there will be a 48 hour-ish delay.

    • This reply was modified 1 year, 9 months ago by Nelsont.
    • This reply was modified 1 year, 9 months ago by Nelsont.
    #62810
    Peapod0609
    Member

    I am sure you could write a letter of explanation for the rent issue since it was a fluke thing and you normally always pay on time. When they pull your credit report if they show no 30 day lates you likely will be fine.

    One thing you can also do in certain situations, if you have late payments on an account, you can pay it off and that won’t count against you. For example, say you have an account with $1,000 and you had a late payment. If you pay off that $1,000 and get the balance to zero then that won’t count against you as far as not having late payments.

    So you should hopefully have some options, I would not fret too much before your intake. My wife and I are were super worried about stuff like that and we ended up having a path to get those problems taken care of.

    #62816
    TTrumble
    Member

    Hello HopefulNC,

    No need to be so nervous. Relax.

    Typically a creditor will give you a grace period after the due date during which they won’t consider you late. Since your credit report doesn’t show any lates, you must have fallen within the grace period. As far as any late fees, call the credit card provider and ask them to reverse the late fees. Tell them you’re trying to buy a house, and since it was one this year and one last year, they will probably remove them. Even if they only remove the one from this year, you should be okay.

    Regarding the rent, write a Letter of Explanation (“To Whom It May Concern”) stating the same thing you wrote here. Also try to get a letter from the bank verifying that it was a system error that caused the late rent payment. Again, you should be okay. What happened was beyond your control.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #62820

    Yes, do call! I actually discovered I was in this exact position when reviewing my updates after being submitted for qualification. Two of our creditors had issues with their payment system – both reversed the charges and agreed to provide documentation since it was “late” as in caused a fee but not “late” as in reported to the credit bureaus.

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