📉 Do Late Credit Card Payments Affect Car Loan Approval?
Yes! A missed or late payment can lower your credit score and signal financial risk to lenders.
Lenders will assess:
✅ How recent the missed payment was
✅ How many payments were missed
✅ Whether the debt has been cleared
If you have one late payment, it may not be a major issue, but multiple missed payments can hurt your approval chances.
🔍 How Lenders View Late Payments on Credit Reports
Lenders categorize late payments based on their frequency and recency.
| Late Payment Type | Impact on Car Loan Approval | How to Improve Chances |
|---|---|---|
| ✅ One Late Payment (Under 30 Days Late) | Minimal impact if it's an isolated case. | Keep all future payments on time. |
| ⚠️ Multiple Late Payments (Within 12 Months) | Moderate impact—some lenders may decline. | Show 6+ months of on-time payments before reapplying. |
| ❌ Missed Payments (Over 60 Days Late) | Major impact—lenders may classify this as a default. | Clear the debt and ask for a clearance letter. |
| ❌ Default or Collection Account | High risk—only specialist lenders will consider approval. | Rebuild credit before reapplying. |
If you missed a payment recently, lenders will want to see a strong recent repayment history before approving a car loan.
✅ How to Get a Car Loan After Missing a Credit Card Payment
If you’ve had a late or missed payment, follow these steps to increase approval chances:
1️⃣ Check Your Credit Report – Ensure no errors or incorrect negative listings.
2️⃣ Settle Any Overdue Debt – Pay off the balance and request a letter of clearance.
3️⃣ Build a Strong Payment History – Make on-time payments for at least 6+ months before applying.
4️⃣ Consider a Secured Loan – Using the car as collateral reduces lender risk.
5️⃣ Use a Finance Broker – A broker can find lenders who accept applicants with past missed payments.
Even if mainstream banks reject your application, some lenders specialize in second-chance car loans.
🚨 Can You Get a Car Loan If You Have an Active Overdue Payment?
It’s very difficult, but some options exist:
✅ Pay off the overdue debt first and provide proof of payment.
✅ Show consistent income and low overall debt.
✅ Apply with a guarantor or larger deposit.
If you have an active unpaid default, most lenders will not approve a car loan until it’s resolved.
🚀 Why a Finance Broker Can Help If You’ve Missed a Payment
If your car loan application was rejected due to a late payment, a finance broker can help by:
✅ Finding lenders that approve applicants with past missed payments.
✅ Matching you with a car loan that fits your financial situation.
✅ Helping you avoid unnecessary credit checks that lower your score further.
If you’ve missed a payment but need a car, don’t risk rejection! 🚗💨 A finance broker can help you secure finance with the right lender.
If you have missed a credit card payment but need a car loan, you still have options! A finance broker can match you with lenders who approve finance despite past late payments.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
