You are aware of the effect your credit scores may face when payments get delayed. Now, you might be curious to know how a one-day delay can harm your credit history. It might feel like you are just one day late, but this cannot stop or pause the impact.
Your credit report holds all the essential information related to payments you handle. The timing when you have completed them and whether or not you are able to beat the timeline will be mentioned there.
Moreover, a loan provider will analyse your credit report ahead of issuing funds. Now, if you have applied for loans for weddings, this one-day delay in making payment of a previous bill will be known to the lender. This is because they will verify your credit background.
Based on what they have found; they can deny providing loan assistance. Your payment history is an integral part of the credit report. This will be included in your credit records, and you should not take it lightly.
No matter how much late you have paid, your credit records will show delayed payments. Only when someone goes through the details can they come to know that you are late by just one day.
Now, there are a few things that must grab your attention regarding the impact of a one-day late payment on your credit scores. Get a quick go-through of this blog.
Effects of one-day late payment on credit scores
Whether or not it will be reflected on the credit reports will depend on whether your lender has given you some grace period or not. Now, one thing you can try here is to get in touch with the loan provider once you feel that paying on time will be difficult.
Depending on the rapport you share with them, you can get a buffer time to extend the payment. In some cases, the lender gets ready, provided you have a genuine reason for delay. This is the time when they will not report your late payment as a delayed payment.
When can you expect to see a fatal impact on credit scores?
You must have heard about credit scoring models. They are so designed that any payment gets delayed by 30 days; only then will it show up in the credit records. Thus, if it is not mentioned on your credit reports, it will not have a direct impact on your credit scores.
No immediate effect will appear to you when a payment is delayed by just one day. However, despite this, you must be alert about a few things.
Conditions are given by the lender
Now, the loan provider might have strict conditions regarding payment. They have no provision to let you pay one day late. You will be able to know all these aspects by reading through the loan agreement.
For this reason, so much emphasis is given to reviewing the loan fine print. You will get to know about the lending conditions in detail. Their policies regarding late payments will vary.
Some of them might impose a late fee and will not inform the credit bureau. On the other hand, some of the lenders might do the two things even if you get delayed by just one day. Besides, some of them might have no problem allowing you to repay in a few days.
Your payment track record
It might happen that you have encountered an unknown scenario this time. Because of this, you are not able to pay the bill at the given time. Now, here, your past track record of timely payments can come in handy.
If you have disbursed all the previous bills on time and stuck this time first, this positive impression can work in your favour. The loan provider might understand your situation, and this can change the whole situation for you.
Above all, you will have an upper hand, which you can utilise by trying to convince the lender. This might not be possible when your credit scores are poor. The loan provider might think that this is your habit.
Getting grace periods
This opportunity is not available with all the financing options. You must check with the lender and loan option as well. This is important information that should be known to you before you apply for a particular loan.
The best thing about having a grace period is that a one-day late payment will remain unnoticed. Thus, this late payment will not show up in your credit records to negatively impact your credit scores.
How can you prevent yourself from getting late in paying by one day?
At times, this type of late payment happens when you forget about the date. Keeping track of the date when you should pay off a certain amount of money is crucial. You can set reminders on your mobile or on your work or personal laptop.
Besides, if you have a physical calendar at your home, mark the date with a colour that is clearly visible to you. Ask your lender if they can send email alerts to you reminding you of the date of payment.
Moreover, you can opt for automatic payment. In that case, the specified amount will be transferred from your account to the given account on the due date. You do not have to initiate the payment.
In fact, everything can happen without any intervention from your end. However, you must make sure to have the necessary amount available in your account ahead of the due date for a smooth transfer.
The bottom line
If you find out that a loan without a guarantor is something that can help you during this situation, do not apply for it straight away. Take some time to assess your financial condition. This will help you to make sure that paying loans back at the given time will be possible for you or not.
In some rare cases, delays can happen when the money you have kept aside gets utilised for some urgent purposes. However, if you have planned for repayments well, repaying on time will not be tough. Therefore, the very fear of facing a negative impact on credit scores because of a one-day delay will not chase you.
