Completing your repayments on time will not harm your credit score and can help to build it instead. However, not repaying on time can lead to legal troubles and a worse credit score. In addition to this, not paying your loan on time can cause additional fees meaning you need to pay back more money than expected.
It’s also possible to get trapped in a loan loop if you take out other loans to repay an existing loan and to cover the additional debt you can’t pay due to the first loan. This is why it’s critical to only take out a loan if you know you can pay it back on time.
Q. Do all Late Payments make it to my Credit Score?
The good news is that not all late payments are made to your credit report. Lending companies cannot send off a report of the account as delinquent the next day. The debt payment needs to be 30 days past the due date before they can report you.
This means you can still make the payment even if it’s a few days late without it damaging your credit score. However, going over the 30 days will put it at risk. After 30 days you will be reported and your credit score will decrease. By day 60 you also risk a permanent interest rate increase.
Q. Can I Complain about my Payday Loan Online?
There are times when complaining to the lender is necessary. Problems can arise with loans and officially complaining to the lender gives them a chance to correct the issue in the future. It could also give you additional help if needed.
- The lender didn’t explain the terms and conditions fully
- You don’t believe the lender should have given you the loan in the first place
- You’ve had problems repaying the loan due to the lender refusing to communicate with you, not accepting your alternative offer or refusing to freeze the interest
Most lenders are willing to help fix the problem. However, if this doesn’t work then you will need to contact a financial advisor for assistance and support. An adviser can direct you to the right place to issue a formal complaint against the company if needed.
Q. I don’t need the loan anymore. Can I cancel a loan after accepting it?
You can write to the lender and ask them to cancel the loan if you haven’t spent the money yet. The company will take some time to respond to you however and there is no guarantee they will agree to cancel it. You can also look at the lender’s website to see if they have any information about what to do in this circumstance.
Speaking with a financial adviser is also a good idea. This will tell you the options you have in your state. If you no longer need the loan but the money has been placed into your account, do not spend it.
Q. Are Payday Loans Online Safe?
Yes! Getting a payday loan online is safe. There are many legitimate websites available that you can safely put a loan application through on. However, there are also less trusted websites around that do not disclose what happens to your information. There are also some fake ones looking to steal your data or scam you. The payday loans online companies on our list are all safe and legitimate companies.
Q. What is the Online Lenders Alliance?
The OLA is an industry association that represents different members of the online financial services community such as payday loan companies. Being a member of this means that the company follows their Best Practises list and their Code of Conduct. Following this ensures that customers and potential consumers are fully informed and fairly treated.