Same Day Loans - I missed the repayment date â€“ What should I do now?
Same Day Loans?
Same Day Loans are easy to apply for, if you feel they're right for you. As long as
- You're employed,
- A UK resident
- With a UK bank account and
- At least 18 years old
When it comes to same day loans, there are some basic rules in place. Usually same day loans are repaid within a month or less of being taken out, as soon as the borrower's salary reaches their bank account. However, in certain unforeseen circumstances, someone may have taken out same day loans and then found that they were unable to repay them. In those cases the best thing a borrower can do is to contact their lender and negotiate a later payment date. In that situation they are likely to incur late payment fees or additional interest on their same day loans but they will not be contacted again or troubled for repayment because it will already have been rearranged.
The worst thing a customer can do in a situation where they have missed a repayment date or been unable to repay their same day loans is to hide from the lender. By appearing to avoid the problem, a borrower could cause the lender to lose confidence. Under these circumstances, a lender may be more likely to seek the help of a debt recovery company or to attempt to contact the borrower incessantly. Lenders only chase borrowers when they have questions and concerns and by addressing those concerns head-on, a customer can avoid uncomfortable telephone calls and red letters. It's always better to talk to a lender about your situation than to bury your head in the proverbial sand. It is also much better for your credit rating.
Credit ratings are affected by failure to repay
As with many other forms of borrowing, same day loans have an effect on your credit rating. If you pay off same day loans on time, you could get a positive mark on your credit rating and there is a chance that your overall credit score will increase. This is because the credit reference agency has been informed by the lender that you paid on time and can therefore see that you are reliable and in control of your finances. In cases where you do not make a repayment on time, your lender could tell the credit reference agency you failed to keep your financial promise and you could get a negative mark on your credit report, lowering your overall credit score.
The above is true of all loans, including same day loans. By paying back same day loans on time, a customer can raise their credit rating and by failing to do so, they can cause their score to fall. However, customers who get in touch with their lender and are honest about their situation are usually treated favourably and given the best advice in fixing their financial situation. Payday loan companies are used to some people defaulting on loans or paying them late and, whilst far from a desirable scenario, those who get in touch and explain generally see better outcomes than those who avoid dealing with it.
Read more about Payday Loans or What are Payday Advances