Just a little loan vent

[tinatark]

Thank you to the pp who mentioned daily interest on loans! Back in the "old days" with prepaid/precalculated interest, added to the principle at the beginning of the loan term, this may have been the case. But simple interest has been around for awhile now! I remember the days of calling for a payoff, which will be lower than the loan balance, because of the interest calculation method, but that was 20+ years ago!

About paying late, but within grace period, or even within the 30 days (for credit bureau reporting) - as a loan officer, I denied many, many loans for late payments which were late, but not reportable to the credit bureaus as being late.

Consider this scenerio:

Payment due on January 10
Credit Bureau reporting, Feb 1 (not reported as late, as it's not 30 days)
Payment made Feb 20 (40 days late, pay a late charge)
Credit Bureau reporting March 1 (not reported as late, as it's not 30 days)

I'm sure it has changed, as I've been out of banking for awhile now, but CB reporting used to be once a month, and you had to report the current status of the account.

 

[vettechick99]

You can skip payments, too. If you are having a hard month, if you ask nicely they will let you skip this one and tack on an extra month to the end of the loan. So DH, the banker, tells me.

 

[golfgal]

Weird, I know I was told by our mortgage person (the person you deal with when you're applying, I can't think of the name....) to take advantage of the 15 day grace period, because she did. (And yes, this was a big bank, not a little fly by night operation.) I thought she was a nut job & set up auto payment for the 1st of the month anyway, though.

Right, as long as you pay BY or ON the 15th, if you pay on the 16th, like the OP said YOU ARE LATE and will be charged a fee.

 

[DisneyBamaFan]

From a guy who pays his mortgage on time every month, I have no sympathy for banks of bankers. Even at current interest rates, a person will pay the bank 200% interest over the lifetime of the loan. A little sympathy for the sucker paying that is appreciated...

 

[BriarfoxinWA]

Right, as long as you pay BY or ON the 15th, if you pay on the 16th, like the OP said YOU ARE LATE and will be charged a fee.

Sorry but if the payment is due on the 1st and you pay on the 2nd you are one day llate. If you get a 15 day grace period it means you can still pay up to 15 days late and not get a late fee - pay on the 16th day and you will get charged a fee. While it may not be reported to a credit bureau I can still check on our computer system and see how many times and how many days you have been late on your payments. So if you set up auto pay on any day after your loan's due date, my system will show you late every month.