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Would I have my credit dinged in this scenario?

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    Would I have my credit dinged in this scenario?

    Hello!

    I'm in a pickle and am trying to understand how to not have my credit score dinged, or get reported with a bad mark...yet I can't find an answer to this question anywhere. So I hope someone can help with some insight.

    I know that if you miss a credit card minimum payment, you don't actually get dinged with the credit bureaus until you've missed the following payment 30 days later, right? So it's the second consecutive missed payment that actually gets you in trouble ("officially", anyway).

    But here's where I'm not clear. I had some huge medical expenses in my family, so I missed my minimum payment last month, let's say it's $250. Of course, the following month, there's the new minimum payment of $250, plus, say, a $40 late fee for the missed payment, and of course, the accrued interest tacked on. So for the this due date, the new payment due is of $550 or so, right?

    Now here's my big question. Do I NECESSARILY have to pay the full $550 to not get dinged with a black mark reported to the credit bureau? (meaning, is the metric here to get dinged "two consecutive late payments"?).

    Or...

    If I don't have the $550, can I pay the late amount from last month, plus the late fee (in other words, just pay the older debt which is approaching 30 days) and thus not get dinged, even though I'd be late on the newer minimum payment of $250? (meaning, the metric to get dinged here would be "debt that is older than 30 days" or "debt that has aged more than 2 payment cycles").

    In other words, am I screwed if I can't pay the full new minimum payment, or could I just pay the older portion which is late? (and would that include either the late fee and interest, or just what's late?).

    Sure, I could ask my bank, but I don't trust them to tell me if the latter thing is possible, simply because they would pressure the hell out of me to pay it all and do a scare tactic about how I'd get in trouble anyway if I don't do the first option.

    So in short - what is the minimum I need to do in order to avoid having my credit damaged? Is it only if I pay the entire past due plus the newly due etc to the tune of the $560, which is the new minimum payment...or if I just pay the late bit from last month (plus the fees), am I off the hook for just a little while until my next paycheck and won't get reported just yet?

    Thanks so much! I would enormously appreciate any feedback...time is tight and I'm worried I can't make the full minimum.

    #2
    Welcome.

    If you have the money to make the payment, you should make the payment.

    If you donít have the money to make the payment, itís a moot point and you just have to accept the consequences.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      That was spectacularly unhelpful.

      Comment


        #4
        The missed payment will be reported as late unless you can negotiate with them not to report it. You would have to make the payment and have a good excuse. Not paying all of the first payment by the next payment due date will add a 30 day late for that payment plus if you miss part of the next payment that will be also be reported as late.

        Your best bet is to find a way to pay the late payment and then make the next payment timely. Your credit will be significantly damaged if you do not do this.

        Comment


          #5
          Got it, thanks.

          I thought, based on what I had read, that it might be enough paying the part that's late (to not get reported - obviously there would be fees and the new part would be late by under 30 days). I'd d have to pay last statement's amount due to stay <30 DL (and it's only above that when you get reported to the credit bureaus).

          Of course, I'm playing with fire - doing this your payments will balloon as late fees + interest are added each month. So the payment due this month that you make next month to keep from going 30DL will be larger. And the payment due next month that you make the following month will be even larger.

          But now that my wife's medical bills are done, I should be able to pay all the minimum on May 1st, and just the $250 (the late part from last month) on the new due date.

          Comment


            #6
            Originally posted by Zephyr102 View Post
            Hello!

            I'm in a pickle and am trying to understand how to not have my credit score dinged, or get reported with a bad mark...yet I can't find an answer to this question anywhere. So I hope someone can help with some insight.

            I know that if you miss a credit card minimum payment, you don't actually get dinged with the credit bureaus until you've missed the following payment 30 days later, right? So it's the second consecutive missed payment that actually gets you in trouble ("officially", anyway).

            But here's where I'm not clear. I had some huge medical expenses in my family, so I missed my minimum payment last month, let's say it's $250. Of course, the following month, there's the new minimum payment of $250, plus, say, a $40 late fee for the missed payment, and of course, the accrued interest tacked on. So for the this due date, the new payment due is of $550 or so, right?

            Now here's my big question. Do I NECESSARILY have to pay the full $550 to not get dinged with a black mark reported to the credit bureau? (meaning, is the metric here to get dinged "two consecutive late payments"?).

            Or...

            If I don't have the $550, can I pay the late amount from last month, plus the late fee (in other words, just pay the older debt which is approaching 30 days) and thus not get dinged, even though I'd be late on the newer minimum payment of $250? (meaning, the metric to get dinged here would be "debt that is older than 30 days" or "debt that has aged more than 2 payment cycles").

            In other words, am I screwed if I can't pay the full new minimum payment, or could I just pay the older portion which is late? (and would that include either the late fee and interest, or just what's late?).

            Sure, I could ask my bank, but I don't trust them to tell me if the latter thing is possible, simply because they would pressure the hell out of me to pay it all and do a scare tactic about how I'd get in trouble anyway if I don't do the first option.

            So in short - what is the minimum I need to do in order to avoid having my credit damaged? Is it only if I pay the entire past due plus the newly due etc to the tune of the $560, which is the new minimum payment...or if I just pay the late bit from last month (plus the fees), am I off the hook for just a little while until my next paycheck and won't get reported just yet?

            Thanks so much! I would enormously appreciate any feedback...time is tight and I'm worried I can't make the full minimum.
            Medical debt is pretty forgiving. As long as you pay something it usually isn't going to go to collections or negatively effect your credit. If you are that worried about it I'd call them and negotiate something.
            Brian

            Comment


              #7
              Originally posted by bjl584 View Post
              Medical debt is pretty forgiving. As long as you pay something it usually isn't going to go to collections or negatively effect your credit.
              It sounds like OP charged the medical bills to his credit card, so it became CC debt. Either that or maybe charged other things to the CC in order to deal with the medical bills.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


                #8
                Originally posted by disneysteve View Post
                It sounds like OP charged the medical bills to his credit card, so it became CC debt. Either that or maybe charged other things to the CC in order to deal with the medical bills.
                Then that would be a whole different issue.

                OP, focus on how you are going to pay your bills. Don't worry about your credit score. Can you work more and earn more money? Can you cut expenses? Can you sell items to raise money? Can you get a side job? Focus your energies there. Your score will take care of itself.
                Brian

                Comment


                  #9
                  You're basically trying to understand what you can get away with.

                  If you are late on your payments, your creditors can report it to the bureaus, and actually are in some cases REQUIRED to report it. Put yourself in their shoes for a second...

                  You lend Tommy money, and Tommy does not pay you the agreed upon amount on time. You tack on a penalty and move on. The second month comes around and Tommy pays the previous payment, plus the penalty, but not the new payment. You tack on a penalty and move on. The third month comes around... rinse and repeat. Eventually you're going to get sick and tired of Tommy always being a month in arrears. Right?

                  Creditors do not focus on each payment as an isolated event. They look at the bigger picture. Being late one month will result in your account being marked "past due," "delinquent," "late," "not on time," or whatever verbiage they choose to use. If your account is not paid in full and brought to "current" in the second month, you will have been late for two months. It does not matter if your first payment is technically paid up now, the fact of the matter is that your account has been in bad standings for two consecutive months.

                  If you are 60 or 90 days past due, your creditor will report it to the bureaus so as to alert other creditors. That way if you try borrowing money from a different company, they will know that you are already having trouble making timely payments. In other words, make your payments on time, or get a derogatory remark. Pretty black and white.

                  You can try to make a deal with your creditor to prevent them from reporting it, but it may not go very far. Certain financial institutions are required by law to report accurate credit information, and credit card companies fall under these regulations. "Accurate" means that the information that they are reporting is true. Just because you do not like what they report does not make it inaccurate. Accurate and true statements will stay on your credit report and cannot be removed (until they expire, of course). Some people try teaching credit repair tips including lying to the bureaus about the legitimacy of information - BAD IDEA! Lying to the bureaus is a form of fraud, so please do not try it.

                  I am sorry that you are down on your luck and are not able to pay on time. Unfortunately, you only have two choices: find a way to become and stay current, or face the consequences. Focus on what you can do to pay what you owe, not on what you can get away with. Your credit report and credit score are simply reflections of your financial situation. If you want to improve them, improve your financial situation. At the end of the day, you should be focusing on what you can control. You cannot control the past (which is really what your credit report is: a summary of your past). You can only control your present and your future. So focus on your present and your future

                  If you find this "spectacularly unhelpful," then that is fine. This is the cold honest truth of it. Just as disneysteve put it, "If you don’t have the money to make the payment, it’s a moot point and you just have to accept the consequences."
                  Last edited by dczech09; 04-03-2018, 01:50 PM.
                  Check out my new website at www.payczech.com !

                  Comment


                    #10
                    Just pay the debt as soon as you can. You credit will probably be effected, but by following up with payment and restarting a string of "paid on time" you'll in no time get your credit back up to normal.
                    Gunga galunga...gunga -- gunga galunga.

                    Comment


                      #11
                      Are you planning on getting a new car (on credit) or a new house mortgage, why such an intense interest in your credit score? Those scores go up and down, and yes, I know that it can affect payment amounts, but not to a spectacular degree if you are having trouble paying it for a couple of months. Especially as it doesnít sound like you are ready to make any big purchases as you donít have any free cash.

                      My advice and I am assuming that you paid your wife's medical bills in full instead of making payments. Next time, make payments so you don't have such a bite to your income. Hospitals and doctorsí offices can say that they want all payment up front, but I have found that for the most part they are forgiving if you are trying to pay the bill. I know at times I had to call my husbandís eye doctor and told them that I couldn't pay anything on the bill until I got my SS check, which because of my birthday doesn't come until the 4th Wed. of the month which doesn't seem to go along with other bills. They just really want to see you trying.

                      Second piece of advice, unless you only get paid once a month, make payments of $20-25 every time you might have it spare for the next month. The cc card company will see that you are trying and if you must call them and talk to a person, they will see that you have been trying and most likely be more lenient towards you. Where to get that extra money? If you don't already, pack a lunch instead of buying it, find some things to sell on Craigslist for cash or if they don't weigh too much try eBay. Work on earning Bing rewards daily and every 6500 points you get, you can get a $5 check. It can take a month more or less to earn that. Doesn't seem like much, but every little bit helps. Sign up for EBates and use it -- when you need to buy something only! Lot of those other rewards and survey places also pay out money. This is where you might want to scour the how to make money on line threads, of go get a part time job such as a gas station attendant. Anything to bump you into having more money. Work OT if available. Whatever it takes to keep making payments, which will help pay off the interest and the late fee and then start making inroads on to the principal. As it sounds like free cash is a problem, you might want to continue to the with money saving as well as money earning activities until you have $1000 EF. If you already have a $1000 EF, NOW is the time to tap it.
                      Gailete
                      http://www.MoonwishesSewingandCrafts.com

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