While this might sound like a statement used far too often, no one can deny that the world isn’t what it used to be. With the economy being in one of its most volatile states in recent history, the everyday person constantly finds themselves scrambling to make ends meet. As bills pile on each other, it’s only natural that you look for a speedy recourse that’ll effectively help you deal with your immediate and pressing needs. And so, you ask yourself;
Why not skip a month or two of my credit obligations and repayment? What’s the worst that could happen if I did?
Here, we’ll be highlighting all you need to know about what happens when you fail to do the needful with your financial obligations in the country today.
The Repercussions Of Missing Even One Payment Can Be Severe
Whether it’s a student loan, credit card bill, or even a house loan, the simple truth is that you can’t afford to miss even a single payment for any reason. It is because such an action will severely damage your credit health! Some things it can lead to are;
Reducing Your Chances Of Securing Future Loans And Credit
Keep in mind that all of these institutions, even though they may be different, ultimately file a record that’ll inevitably show up in your credit report—because of this, even missing one payment will give off the impression that you aren’t financially reliable. It will severely lower your credit score, but it’ll also serve as a red flag that’ll actively discourage future lenders from borrowing your money. As you’re likely already aware, most banks and financial institutions will only do business with individuals with a sound credit score. At the moment, that means having a score of at least 650. People who have this tend to get their loan applications approved faster.
Make You Pay Even More
In addition to getting you blocked by most banks and financial institutions, failing to make your payments on time also costs you more. When you default, you automatically attract a late payment fee. So, there isn’t any upside to not making your payments when you should. You may be asking, but I’ve already missed a few payments. What can I do to get back on track? Two things you need to do as soon as possible are;
One – Get Your Most Recent MyCTOS Score Report
This document will let you know just where you stand as it’ll show you your current credit score and which payments you missed precisely.
Two – Come Alive To Your Responsibilities
Once you know where you defaulted, make sure to cover that backlog and the late fees it attracted as soon as possible. And, most important of it all, make sure you stay current! Provided you don’t miss any more payments in the future; your credit score is sure to recover!