What happens if I miss a loan payment?

If you happen to miss a loan payment, the consequences may depend on your specific loan agreement and the policies of the lender. Typically, there are certain repercussions that may occur. First, you might incur a late fee, which can be a predetermined fixed amount or a percentage of the payment due. Additionally, missed payments can negatively impact your credit score, making it harder to secure loans in the future. Lenders may also report late payments to credit bureaus, which can stay on your credit report for several years. Moreover, continuous missed payments could result in the lender taking legal action or sending the debt to collections. It is crucial to contact your lender immediately if you miss a payment to discuss options and potentially avoid further consequences.