Does paying on the grace period affect your credit score?

Question

I bought a new car and for the montly payments i get a ten day grace period. Does paying on this grace period, (me going to the bank to pay not by sending my payment through mail) affect my credit score? Would it make a difference if i sent the payment by mail on the grace period?

Answer 1

no. only if you're 30 days late ..

Answer 2

This should not show up on your credit report. Only payments that are 30 days overdue show up as late on your report. HOWEVER, if a company wants to do a more thorough investigation, they may call another financial institution and get a more specific record of your payment history. Did you usually pay the minimum? Do you pay a few days after receiving the bill, or at the last second? If you are borderline on getting a loan, these things could effect the final decision.

Whether you pay in person or mail the payment will not show up on your report, but mailing the payment on the payment date will not give you credit for paying on time. They have to receive the payment and process it.

It's dangerous to play with paying bills at the last second. If you make any mistakes, it can cost you lots of money in late charges. What is the benefit of paying on the last possible day? Even if you're earning interest on that money while you hold onto it, you're only earning a few pennies by paying 10 days later.

Answer 3

credit is only affected by accounts that go unpaid for MORE THAN 30 DAYS. If you are 29 days late, which is beyond your grace period of 10-15 days on average, you will still not be late according to the credit bureaus. You may be assessed a late charge by your creditor, but it still doesn't affect your credit score unless you are past 30 days.

Remember, your creditors do not go by a postmark, they go by when they receive the payment, in case that was your other question.