How much would one late payment affect your credit?
I pay all my bills, on time EVERYTIME. Something happened this month with my online bill pay and the direct loan servicing center didnt receive my payment. I didn’t find out about it until they sent me an email saying I was ’14 Days Delinquent’. I called and they said they never recieved an October payment so I paid it right then and there over the phone. Now I’m panicked that this will seriously impact or tarnish my credit, which I have otherwise studiously maintained. What do you reckon will happen? How terrible could one late payment affect my overall score? I’m talking about my student loans here. The direct loan servicing center is where you send payments to for federal student loans.It shouldn’t show up on your credit report unless it was 30 days past due.
nah. it’s not going to tarnish your rating. Reckon about it: creditors don’t just look at your score, but also your payment history. If they see one late payment– less than 30 days late — in a sea of promptly paid bills, they’re going to realize that it was probably a mistake and ignore it. It will not likely have a huge impact on your credit score either, especially if you have an customary history. If you’ve had a credit account for 5 years, let’s say, that’s 1 out of 60 payments that is late. What impact do you reckon that will have? virtually none. Furthermore, score has a lot more to do with amount owed, age of accounts, debt to credit ratio and other factors. Your payment history isn’t the only factor, so in that context, one late payment is going to barely affect you. In fact, in Canada, if you are less than 30 days late,it wouldn’t even show up on your credit report. I don’t know if it’s the same in the US, but you could check.
You need to contact the direct loan payment service and find out what happened to the missing payment you had previously scheduled. Then you have THEM contact your student loan funding and clarify that it WAS THEIR fault your payment was late. Most lenders DO NOT contact the huge three credit reporting agencies, until you are 30 days late. Had you not responded to the 14 day notice timely, you might have received a derogatory report. I would insist on having your on-line payment people take care of this, and if it happens again, find another one. I had this happen once with a utility company, and when I had my bank probe where the payment went, apparently a bunch of people’s utility bills had not been posted correctly by the on-line payment center.. They admitted their mistake, and no negative report was made on my credit. I reckon you are fine, but you need to find out what happend to the orignial payment.
What’s the best way to use 20,000?: Student loan repayment?
I am getting 20K from the Indian Health Service to help me pay back my student loans, because I work in a rural indian health center. They make a direct deposit to me – I have about 130K in loans to pay back. As long as I have qualifying loans I can reapply each year for another 20K. If I send the money directly to the loaner and take 20K off the top, my monthly payment will only reduce about $ 150/mo if I’m lucky. If I bank the 20K instead and use it for monthly payments of say, $ 1500/mo then I could keep what is NOW coming out of pocket ($ 850/mo) to increase my personal income – which is desperately needed. So, bottom line there is I would be increasing my payments by 650/mo. Question is, would this be better for me or worse in the long run due to compound interest rates? $ 150/mo decrease in monthly payments with 20K off the top of 130K owed. OR bank the 20K and increase monthly payments 650/mo. HELP! My loans range from 8% for state loans (80K) and 3-4% federal loans 50K. HELP!Whatever blows your skirt up
Have you questioned the loan company what the impact of an lump sum principal only payment would be? I would be worried that if i held on to it I would spend it on something else. If you make a principal only payment you would be reducing the amount of interest you would be paying for the life of the loan.
It would probably be best if you place the money toward paying off your loan with the highest interest rate. Once you have made that payment, you may be able to renegotiate your monthly payments. You may also consider using half of the money to pay off loans and the other half for monthly payments.
Direct Deposit time line?
I e-filed my tax return (single) on the 29th and it was accepted on the 30th. I called the IRS and was informed my return would be deposited this Friday. I used H&R Block’s free federal edition on their website – therefore no emerald card or loan. My bank is a full service center which is locally owned and operated. With this provided there are no 2nd and/or 3rd services for it to travel through when deposited – at least that I am aware of. I am moving out of state this coming weekend and need that money to pay off any remaining bills and want to close my bank account here by the time I leave Sunday afternoon. So will my money be deposited directly? It’s only $ 800 and I personally see no other interferences with its arrival.Dear Blake: Last Friday the IRS released many refunds and I expect this Friday many more will follow. Question your bank how long it will be before it shows up on your account if released on friday by the IRS. Some banks add a day or two to the process. This advice was prepared based on our appreciative of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
I e-filed and was accepted on 1/30. My expected deposit date is 02/13. The IRS only sends out deposits on friday, so chances are it’ll be there by this friday
According to this chart from the IRS website, your direct deposit will be sent this Friday, Feb 13: http://www.irs.gov/pub/irs-pdf/p2043.pdf You can also check out the ‘Where’s My Refund’ feature on the IRS website if you need more in rank: http://www.irs.gov/individuals/article/0,,id=96596,00.html
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According to an article on Yahoo just this week, one late payment has a negligible impact on your credit score. As the other poster noted, late payment do not show up on your credit score unless you are more than 30 days past due. Most credit reports have columns for 30, 60 and 90+ days past due and the number of times you have been late under each column. 14 days is nothing to worry about. Be glad they contacted you, sometimes you don’t know until the next statement and by then it’s to late.
Unless you went 30 days past the due date, you should be ok. It won’t even reflect on your credit report.
Bank the money that you will need for the immediate future – potentially until you get the next 20k – and use the rest to pay off the 8% state loan (start w/ the highest interest rate first).
From the money you bank, consider a money market fund or CD to get a higher rate on those funds, but make sure you keep enough available to meet expenses
Federal loans at 3% are almost like free money, but 8% is more than you can reasonably expect from investment vehicles. Also, you may want to look at a consolidation that would allow you to stretch out the repayment term – which would lower your monthly payments.
If you do consolidate, consolidate the high and low interest ones seperately to allow you to pay off the high interest ones sooner.
Typically student loan repayments have low interest rates. If you can lock in a guaranteed rate better than that by investing the $ 20K, you will be able to pocket the difference. See a Financial Advisor.
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