Houston Credit Repair Expert, Vanessa Perry warns about the side effects of deferred payments post natural disasters in the latest episode of Ask Impeccable below.
Natural Disasters & Deferred Payments
When a natural disaster happens often times lenders will offer to defer a payment due to the circumstances. Keep in mind that deferring a payment it does not mean you do not have to pay the payment. The payment is moved to the back of the loan. The payment that is deferred will not be charged until the end of the loan or will be charged with the next payment. Make sure to mark the date the deferred payment is due. Often times people forget about the payment. This causes either a single 30 day late or continuous rolling late payments that could potentially lead into collections.
Late payments can destroy credit. Rolling late payments could even be considered a natural disaster themselves. WIth a 30 day late it can hurt the credit score negatively 40-45 points. The lenders might say “Pay when you can ” or “Do not worry about the payment until you get back on your feet”. Although that is sweet of them make sure you get a due date on the deferred payment. Make sure to fill out all information and paperwork needed as well. If you have late payments or collections due to a natural disaster or in general you may want to contact a credit professional for assistance.
Houston Credit Repair
Impeccable Credit Services has been in business for over 17 years. With two physical locations and virtual consultations we are able accommodate anyone. We have helped thousands of people with their credit restoration needs. Our goal is to help our clients achieve financial success. If you have any questions regarding your credit please feel free to give us a call 713-378-1500.