Running Late

Eric wants to know if a mortgage is considered late on the 15th of the month. If he pays after the 1st of the month, will it show up on his credit report?

QUESTION: Eric in Lexington wants to know if a mortgage is considered late on the 15th of the month. If he pays after the 1st of the month, will it show up on his credit report?

ANSWER: It’s late after the 2nd of the month. They charge a late charge after the 15th. It very well could hurt your credit report, depending on how they choose to report it at that mortgage company.

I owned a bunch of property many years ago, and I had several who would report me late if I wasn’t there on the 2nd. Some of them did it on the 5th. But the 15th is usually where they calculate the late charge.

In other words, if you read your agreement, it doesn’t say anything about the 15th. It just says “due on the 1st.” If I were you, I’d have it there by the 1st. That would be my plan.

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