Frequent payment skippers
Frequent payment skippers

Banks like it when you skip an occasional payment, and they can charge you interest and late fees. But they also want to be paid back. Too many missed payments is a red flag.

"Banks are constantly trying to perfect the method of who's going to repay and who's not," said Feddis.

On the one hand, banks want customers to make payments on their loans. But on the other, they can't collect late fees from customers who always pay on time. So the customer who typically makes on-time payments but slips up once in a while is the ideal target.

"If you miss one or two payments but don't look like you're getting close to defaulting, they like that," said Papadimitriou. "But they have to be careful, because some might actually continue not making payments and then default."

Last updated May 11 2011: 3:56 PM ET

These 7 credit cards are the superheroes of the banking world, say industry experts, providing low fees and sane rates to people trying to build or repair their credit. More

Can't escape your bank's dirty tricks? We found 8 with zero ATM fees and free checking. More

Find Homes for sale
  • Property Type
  • Find a home in:
    New York | Atlanta | Chicago | Los Angeles
    Washington D.C | Houston | Philadelphia | More options
Most Popular

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.