Late or missing mortgage payment can seriously affect your credit score. Even though you can be running out of cash to pay for your upcoming home loan at certain times, it is definitely a bad idea to skip it. Instead, you should head up for some alternatives such as bad credit loans and get your monthly mortgage payment settled before anything else.
Based on the regulations of the major credit bureaus, once you’re late by 30 days on your home loan payment, your credit score will be instantly dropped by around 100 points. This can be a major trouble to you, especially when you’re planning to purchase a new property or buy to let mortgage within the next 2 years because it will be impossible for you to obtain the lowest interest rate possible with your lowered credit score.
Things could get even worse if your adjustable rate mortgage (ARM) is about to meet its renewal date. Being late a month for your mortgage payment just dropped your credit score by 100 points, when your ARM renews and adjust its rate according to your financial status, you’ll definitely be charged an even higher interest rate for the next monthly payments.
If you are facing a financial problem and realize that you are going to be late for your mortgage payment, you should quickly opt for a quick cash loan. Though a quick cash loan can be high at interest, but it is still the best alternative to solve your current crisis in time. Seeing in the long run, it is much wiser to pay a single high fee for the cash loan rather than losing your credit score. These loans which are also known as payday loans or cash advance can be easily acquired through certified lenders over the internet and they do not require any documentation nor will they check on your financial status before approving the loan.