Defining two missed payments or 60 days

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tomdiaz
 
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Defining two missed payments or 60 days

Postby tomdiaz » Wed Oct 14, 2015 7:03 pm

Wondering exactly how the new CARD Act works as far as hiking interest rates for late payments. I've read "two missed payments". I've also read 60 days late.

I missed a $200 payment a few days ago. Now, my statement says I have $400 due at the end of this month. If I pay the missed $200 payment right now, but miss the next $200, which is due at the end of the month, am I 60 days late? Or, is that two missed payments?

Just want to find out if I'm in danger of an interest rate hike.

Thanks!


takeshi
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Re: Defining two missed payments or 60 days

Postby takeshi » Thu Oct 15, 2015 8:49 am

Check the terms for your account. Some of them do have information on penalty APR's due to late payments that are not necessarily tied to 30 or 60 day lates. It's really up to a given creditor to determine if lates will impact your APR and you can't apply a broad, sweeping generalization to all creditors out there. Risk tolerances vary from creditor to creditor and will impact how they respond to derogs in your profile.
Give the impact of derogs you need to do whatever it takes to avoid them. Do not miss a payment. You want your Payment History to be 100% given that it is the biggest factor. Use auto pay if it is of benefit to you.

Vermonster
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Re: Defining two missed payments or 60 days

Postby Vermonster » Thu Oct 15, 2015 9:22 am

tomdiaz wrote:If I pay the missed $200 payment right now, but miss the next $200, which is due at the end of the month, am I 60 days late? Or, is that two missed payments?


This isn't an option. Don't even entertain the though. Your card agreement will say how payments are applied to lates payments. Unless you pay $400, you're screwed. Some cards will not report 30 day lates, others will report immediately. It is up to the discretion of the bank to decide what fees they charge, or interest hikes, and when they do it. Check your agreement like takeshi said.
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Vattené
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Re: Defining two missed payments or 60 days

Postby Vattené » Thu Oct 15, 2015 11:27 am

Vermonster wrote:This isn't an option. Don't even entertain the though. Your card agreement will say how payments are applied to lates payments. Unless you pay $400, you're screwed. Some cards will not report 30 day lates, others will report immediately. It is up to the discretion of the bank to decide what fees they charge, or interest hikes, and when they do it. Check your agreement like takeshi said.

+1
It's only a few days late. Make the payment as soon as you possibly can and get yourself current. If you're lucky no late payment will be reported at all. What's important is making sure there are no missed payments going forward.

As mentioned it will depend on the account you have. Some issuers like Discover offer leniency as a perk and won't raise your APR immediately, but I don't think that is the norm.
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Kevin86475391
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Re: Defining two missed payments or 60 days

Postby Kevin86475391 » Thu Oct 15, 2015 12:47 pm

Hmm, it sounds to me like perhaps this situation is more serious than simply catching up on payments. Is paying $200 a month going forward, plus your other financial commitments, tenable?

Definitely do check the terms of your account with your creditor to find out about penalty APRs as others have suggested. However, you might also consider checking out NFCC.org https://www.nfcc.org/ to help with your overall debt problem.

Maintaining good credit is important, but it's also important to be honest and realistic about your situation. Is this something you can fix on your own going forward or has it escalated to an unmanageable point? There are non-profit, debt counseling services in place that may be able to help you reduce your APRs and simplify your debt repayment through a debt management plan. If you go that route, make sure you do it through a non-profit service. Fees should be very low or completely non-existent depending on your income.



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