Borrowing and lending money online calls for a mutual trust between the borrower and the lender. As a borrower, you trust that the lender will help you out by giving you financial relief. As a lender, on the other hand, you trust that the borrower would pay you back on time. On-time payment is always ideal because it results to less cost and penalties. But of course, there will be times that you may not be able to pay your cash loans on time. So what will happen then?
Below are some answers:
1. The usual route is that lending companies will try to collect all delinquent amounts by sending you reminder messages through phone, text or email. If you remain to be unresponsive after several attempts, they may send you a collection notice via mail to your indicated home address. If nothing works, lenders may transfer your information to a third party collect agency who will continue to contact you until you settle your cash loans dues.
2. Fees and penalties. A late fee may be charged if you fail to pay your cash loans on time. These fees and penalties will be added on top of the original total cost of your loans. These possible financial implications are the main reasons why it is best to pay your cash loans on time.
3. Impact on your credit score. Web-based lending companies also report to credit rating bureaus. Hence, if you fail to meet your obligations, your credit score will be affected too and you will continue to have bad credit. So if the main reason why you turned to cash loans for financial relief is because no bank wants you and you intend to prove them wrong, not paying on-time is a bad move.
4. Loan rollover. A loan rollover is when your cash loans are automatically renewed by the lender’s system. Not all lenders do automatic rollovers though, so it is best to read the terms and guidelines first before signing any deal. Trusted lending firms would not do automatic rollovers because these would incur a whole set of fees and interest rates. These firms would first try to contact you repeatedly and would let you know of an incoming rollover before doing so.
The four items listed above are the most common repercussions of not paying your cash loans on-time. To avoid them, you need to be a responsible borrower and do your end of the deal. After all, your preferred company trusted you with a no credit check so it’s just right that you prove that the decision is not wrong.