Making payments question

bgina77 · Joined: 15 Oct 2008 Posts: 8 7.21 Dollars($)

Part of building your credit is making payments on time and paying steady.
When a mortgage company says the payment is due on the 1st.
Are you suppose to send your payment on the first? Or do you count back a few days and send it so it gets to them by the first?

Maybe I'm just up tight about making my payments. I always send it early enough to where it gets there by the first. But am dealing with a person who is suppose to make monthly payments to me. They think sending them on the due date is being on time.

This person also don't want to be pentalized because of the mail. (a late fee) I explained the mail runs pretty faithfully 6 days a week. If the mail is late it is just late by a few hours in that given day. So if I get the payment late it is because the sender is late and not the mail.

I really need this person to show the ability to pay on time before I sign an contract of owner will carry. Because I want them to build their credit so in 5 years of taking payments. They can take the monthly payments and use it as their down payment to get their own financing.

If you want to build your credit. Do you do it by having your payment there on the due date? Or is it flexible and you can still build your credit as long as payment is paid before the late date?

elnoralittle · Posted: Fri Oct 17, 2008 1:17 pm Post subject:

It is always nice to have the payment by the first. but you do have a 15 day grace period on conventional mortgages to make your payment before a late fee is assessed. Most won't report it late until 30 days have past.

Posted: Fri Oct 17, 2008 1:40 pm Post subject: Making payments question

When they say that late pays effects your credit. Is it based on paying after the 15th? Instead of the 1st.
With the due date being on the 1st and giving till the 15th - grace.

If your goal is to build the credit. They don't fault you for late pays after the 1st. Then banks are a lot more understanding them I am being. It's after the grace time of the 15th they would see badly on the credit. Is this right?

Niicss · Posted: Mon Oct 20, 2008 4:02 am Post subject:

Hi Guest!

I don't think that the grace period is taken into account. If you cannot pay within the grace period then they will consider this as a late payment.

Thanks.

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