When you apply for a car mortgage, it is very important that you pay in full and on time. Sometimes, however, there may be successive delays for various reasons. Today we come to talk about the impact of a five-month delay in car mortgages。

Did the five-month delay in the car mortgages have a significant impact? Is it bad

Credit damage

First, as soon as you're overdue, the loan institution (e.g. a bank or car-buying loan company) will upload your overdue records into the personal letter report. Five consecutive months of overdue records will have a very negative impact on your credit rating. This will not only affect your future application for other loans or credit cards, but may also encounter problems in renting housing, finding work, etc。

Vehicles disposed of

Under the terms of the mortgage contract, the loan institution is entitled to take a number of measures, including locking, trailers and even auctioning of vehicles, if you fail to pay on time. This means that you will temporarily lose the right to use the vehicle, and the process will become quite complex and expensive to get back to。

Repayment pressure increased

You would have only had to repay the principal and interest, but if you were five months overdue, you would have to pay extra high rates of interest and late payments. This is no doubt a further increase in the burden of repayment for you, who are already under economic stress。

Credit restrictions

Serious overdue records would prevent you from doing any new credit business for some time to come. In the process of approval, the loan institution scrutinizes your correspondence records and, if serious delays are detected, they can almost certainly be rejected。

Legal risk

If the overdue period is too long, the lending institution may choose to pursue the arrears legally. In case of prosecution and failure, you may be classified as a disbelievee and thus face restrictions in daily life, such as consumption, travel, etc。

In order not to allow these situations to occur, it is important to maintain good lending habits in the use of credit products, to ensure that payments are made in full and on time and to avoid delays。