How much does one late payment on a car loan cost you?
According to a recent study by credit bureau giant Experian, just one late payment could drop your credit score by 98 points or more. The average person with no late vehicle payments has a score of 703 - those with one late payment have a score averaging 605. Twelve percent of the people in their study have at least one late auto payment on file.
If you're behind on payments more than 90 days, your score could drop to 580 or even lower.
Because of differences in credit scoring models between credit bureaus, the actual drop in score may differ from one to the next. TransUnion says that generally, one late payment can drop a score between 25 and 75 points.
Since your credit history and credit score is one of the primary determining factors in getting good rates on loans, credit cards and insurance (and may even impact whether or not you get the job you're seeking), you want to be sure you make on-time payments.
