Have you missed repaying Loaned Cash just by one day? If yes, then get ready to pay penalty. There could be situations arrived once in our life when we fail to repay loaned cash on time. There can be mainly two reasons for due payments.
Affording Problem - A consumer may fail because he can’t afford to repay at one go. Some people find it difficult to pay whole amount with just limited monthly salary. Today, it is not easy for salaried person to manage all expenses with restricted cash.
Forget – Some people after sustaining borrowed cash from banking institutes engaged themselves with other household activities and business meetings that they even forget the date of repayment.
Major Effects after Late Payments:
Punishment- if in any circumstances consumer fail to make repayment the lender will ask him pays extra fees or penalty for it.
Raised Interest-Rate - it depends on lender to lender to penalize a person for paying late. Some may increase up interest rate or some demand just extra cash for it.
Credit Report – try to convince lender to not to send report to credit companies. In words of those credit bureau companies, late payment is considered as negative-mark for consumer’s credit history. This could lay down bad affect on his/her future. If payment is late by 30 days then it would impossible for consumers to convince his/her lender.
Credit Score – credit score may falls down if miss a payment.
Remedy
Call Lender – Very important step you should do after knowing this that you missed a payment is call your lender immediately. Tell him the exact reason. Don’t tell him lie. Through direct communication, it may happen that lender would probably prevent you from being penalized by credit bureau companies or even penalty charge.
Ask of Refinement Period – if possible talk to lender and request him give you last chance to improve over the mistake of missed payment. Request him to give 4-5 days more to repay full amount.
