What is the Repayment Process?
This will depend on the dates you agreed to repay the loan with your lender.
For Payday loans this will be the single payment date you agreed with your lender when you signed for the loan, it will usually be within 30 days of your loan approval date as it is designed to just cover you until your next payday.
For Short Term or Installment loans, you will have again agreed a set of dates as per your sign loan agreement. These dates usually coincide with your future paydays.
Any payment is taken automatically from the bank account you detailed when filling in our online form, any payments will usually only be taken on the date you agreed when signing for the loan. The lender should contact you if they need to take an agreed payment on a different date and the reason will usually be covered within their terms & conditions, it may be that a payment date falls on a weekend or a holiday.
The repayments are usually agreed and taken on the day you stated you get paid, this usually ensures you have sufficient funds in your account, but please ensure you don’t go overdrawn and face bank charges, so remember that the loan repayment is coming out and to have enough funds in your account.
Will my loan be automatically renewed?
The answer should be No, but you do have to inform your lender that you do not want your loan to automatically renew once you have payed it back.
It depends upon the state you live in and the lender. All lenders have their own renewal policies, as well as each state having their own laws regarding automatic renewal of loans.
Make sure to ask your lender if any loan will automatically renew or if they have to receive your permission first.
Any loan renewal will result in the additional interest and fees to your loan balance. Please make yourself aware of these fees, before agreeing to any loan renewal, to avoid any unnecessary stress or worry when the loan renews and new fees are added.
What are the implications of late payments and non-payment?
Late payment and non-payment implications vary from lender to lender, so check with your lender before agreeing to the loan offer.
If you do miss a payment or not pay your loan installment there are, more than likely to be, financial consequences such as penalties for missed payments or/and additional interest costs for each day the payment is overdue.
Other consequences include;
- Your account being sent to a Debt Collection agency
- Your Credit Score could be affected
- If you are offered a loan renewal or extension then additional fees and/or interest will be added
Many consumers get in trouble by not being aware of the penalties. Ensure that you have read and understood the consequences for non payment when you take out the loan.
If you are unsure about any part of your loan commitments, please contact your lender directly.
Can I Extend or Renew my Loan?
Each State has its own policies on renewals of a loan so please check the terms & conditions of your loan and contact your lender if you are unsure of the details.
Can I pay my loan back early?
If your circumstances change and you can afford to repay your loan back early, some lenders may offer you a settlement fee to pay of the loan, this will depend on your lender. If you feel that this may be an option for you, then ask your lender beforehand to avoid any disappointment later if their terms for early settlement are not what you were expecting