Skipped Payments

What about Skipping This Month's Payment

Some banks or lending companies will offer a special promotion to their customers that allow them to skip a payment every now and then. Before taking this opportunity, read the fine print to insure that skipping the payment will not adversely affect the interest due or your account standing.

In reality however, there really is no such thing as skipping this month's payment and starting again next month. Most financial institutions apply payments made to the earliest unpaid amount due. This means not only is the skipped payment actually considered late, but so is every other payment after that – even if all other payments are on time and in full.

To correct a skipped payment problem, contact your creditors to find out what amount is actually due and pay it in full. The increased number of late payments will eventually hurt your credit rating. (Learn More About Late Payments).