What are the Consequences of a Missed Loan Payment? How to Correct It?
Did you know about the kinds of loan payment defaults? Major defaults are those where you have not paid the EMIs in more than 90 days. This can significantly affect your credit score, and your loan account falls under the Non-Performing Assets group. However, if you miss a payment in less than 90 days, it is seen as a minor default. This impacts your credit score to a lower extent, and you can usually recover from it. If you borrow money on a loan app , you can track your loan and repayment statuses. This can help you plan your EMI payments properly. Nevertheless, if you still miss a payment, here are its consequences and the ways to correct it. What Happens When You Miss a Loan Payment? Your Credit Score Will Fall: As already discussed, the primary consequence of missing a loan payment negatively impacts your credit score. If you miss even one EMI payment, your score may drop by 50-70 points. Your Creditworthiness Will Go Down: A low credit score will imply poor creditwor...