IRVINE, Calif. — Consumers who are late with as little as one car payment can see there credit scores drop by 100 points, according to a recently published study by Experian, one of the three big credit reporting bureaus.
The national average credit score for consumers with no late auto payments is 703, while the average score for consumers with at least one late payment is 605. The average credit score drops further to 580 when an auto payment is late by 90 days or more, the company said.
Texas had the lowest average credit score for those with at least one late auto payment at 592 and also had the highest monthly auto payment of $570. Conversely, consumers in New Hampshire had the highest average credit score for those with no late auto payments at 728 and an average monthly auto payment of $442.
The study also found that 12% of consumers have at least one late auto payment on their records.
“An automobile can be one of the larger purchases consumers make over their lifetime and their credit score is one of the factors lenders use to determine the interest rate and loan terms,” said Ty Taylor, president of Experian Consumer Direct. “Paying bills on time and spending within your means are cornerstones of effective credit management, which can have a positive impact on a consumer's credit score.”
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