What happens if I miss a loan payment?

Modified on Thu, 27 Apr 2023 at 10:15 AM

Sometimes life can get in the way of our financial obligations, and missing a loan payment can happen to anyone. It is important to be aware of the potential consequences of loan payment and it’s important to understand both what missing a payment can cause and the steps you can take to get back on track.

First, a look at what happens when a payment is missed:

A missed payment due to non-sufficient funds (NSF) can result in fees charged by both your bank and the lender
Late fees may be charged by lenders if a payment is missed, in addition to NSF fees
Late payments that are 30+ days overdue can negatively affect your credit score as they are likely to be reported to credit bureaus such as TransUnion and Equifax.

If you think you won’t be able to make a loan payment, it’s important to be as proactive as you can. Try to contact your lender to see if there are any options available to help you. Most lenders are willing to work with you and offer assistance.

If a loan payment has been missed, here are some steps to take:

Speak to your lender. Even if a payment is already late, they can provide you with options to help
Making your payment within 30 days of the due date, a late payment is better than no payment at all
If your payment due date is the cause of missing payments, your lender may be able to adjust your payment schedule one time, or for future payments

Loans can be a great tool for building your credit score, but it's important to keep in mind that missed payments can have a long-lasting negative impact. Creating a budget and working with a financial advisor, in combination with responsible credit usage are also great ways to ensure your finances are being kept healthy.

Click here for information on NSF fees related to your Fig loan.

We do our best to provide useful information. However, we cannot guarantee that the information is complete, accurate, up-to-date or otherwise reliable for any particular purpose. This article is provided to you as information only and not as advice tailored to your reality.