What happens if you miss a personal loan payment and how to deal with it? MintGenie explains

Failing to make a personal loan payment may result in several adverse outcomes, such as..

Late fees: Unpaid payments often result in late fees imposed by most lenders, typically ranging from 1% to 2% of the overdue payment amount.Damaged credit score: Failure to make a payment can have a significant negative impact on your credit score, especially if it gets reported to credit bureaus..

A lower credit score may make it challenging to qualify for future loans, or you might face higher interest rates.Increased interest: Certain lenders may apply interest charges to the overdue payment, contributing to a higher overall loan cost.Collection calls and legal action: Multiple missed payments could prompt the lender to transfer your account to collections, leading to persistent calls and letters..

Making timely repayments on an unsecured personal loan has an even more pronounced positive effect on ones credit score...

Instead, conduct thorough research in advance to identify reputable lenders that provide a combination of advantages, including competitive interest rates, reasonable processing fees, minimal or no prepayment charges, favourable loan tenure, a streamlined process, and minimal documentation requirements, among other factors...

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