Question

Jim and Jennifer have excellent credit but were late on one mortgage payment. What is the most probable consequence of this late payment?

a. The credit report administration will cancel their credit.
b. The bank will request wage garnishment.
c. Their credit score will go down a few points.
d. The bank will repossess the property.

Answer 1

Being late on one mortgage payment will most likely cause Jim and Jennifer's credit scores to decrease slightly, assuming they have an excellent credit history.

Step-by-step explanation:

The most probable consequence of Jim and Jennifer being late on one mortgage payment, considering they have excellent credit, is c. Their credit score will go down a few points. Lenders and credit reporting agencies recognize that occasional late payments may occur; a single late payment is unlikely to lead to more severe actions such as wage garnishment, repossession, or cancellation of credit, especially if the borrowers have an otherwise strong credit history. However, credit scores are sensitive to payment history, and being late on a payment can indeed result in a slight dip in the score. It's important to make subsequent payments on time to avoid further impact and to recover the lost points over time.