Late Payments on Colorado Car Loans

According to the major credit bureaus, it is important not to miss payments because the missed payments will affect your credit score negatively. According to a study that Experian ran, even one payment missed on your car loan can negatively affect your credit rating.

Experian is one of the big three credit agencies; the other two are Transunion and Equifax. They say that if you can avoid being late on even one auto loan payment it will significantly increase your credit score. Some people think that if they miss one or two payments that it won’t make that big of a difference, but they are incorrect.

The average credit score for consumers across the board in Colorado that have no late auto loan payments on their current records is 706. The average credit score for consumers in Colorado that have missed one or more payments is 605. That is a difference of more than 100 points – which will make a big difference to lenders deciding what interest you will pay on future auto loans.

They say that on average only 12% of borrowers have missed a car loan payment in the state, which is pretty good. Most car loans have a monthly payment of somewhere in the vicinity of $500 for the state. Most car loans are for somewhere between $16,000 and $17,000.

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