What Will Be The Impact On Your Credit Score When You Don"t Refund Payment?
Non payment of the loan amount can seriously affect your credit score perfection. If you don't refund the payment on time, lenders provide this information to the credit bureau which they record in your credit file that eventually decreases your credit rating. Impact on credit score when you don't refund payment can be massive. That is why, it is important to understand it to avoid the consequences of non payment.
Effects On Credit Score When You Don't Make Repayment
€ Blemished Record Entered In Your Credit File
You default on your loan payment then it will record in your credit file and considered as the blemished record. Usually lenders inform the default to the credit agencies so they can update the information in the credit file of the borrower. Lenders are least interested in knowing the reason for default they simply inform it to the agencies which give you the tag of bad credit borrower. It is also important to note that this information remains on the credit record for a longer time period.
€ Decrease Your Credit Rating
The major impact of non payment would be a reduction in your credit rating. This record of your payment history would negatively impact on your score and it automatically deducts a good number of points. It affects you more if you already don't have a satisfactory credit rating. It can lower down your score which can create problem for you in the near future.
These impacts can highly disturb your life because credit score plays quite an important role in various aspects of one's life. So, it is necessary to understand the cost of low credit score before you default on your payment.
Some serious consequences of having a bad credit rating are:
€ Trouble In Getting New Credit
It is important to understand that bad credit rating can create trouble for you when you look for a new credit deal in the future. Lenders always check the credit report of the loan applicant before offering them the loan amount and they are not interested in dealing with people having low scoring. They either reject the application or give the loan at their own terms and conditions.
€ Reduce Your Credit Limit
Low credit rating also impacts your credit limit. Lenders and credit card companies reduce the credit limit of the people having less than perfect score. It means you won't able to get the needed credit at the time of need.
These are some of consequences that affect your financial future if you have a low credit rating. So, it is advisable that you must keep your records cleans by taking the amount according to your repaying ability and repaying it with no default. Meeting payment on time assists you to have good credit which will provide you a number of benefits.
Effects On Credit Score When You Don't Make Repayment
€ Blemished Record Entered In Your Credit File
You default on your loan payment then it will record in your credit file and considered as the blemished record. Usually lenders inform the default to the credit agencies so they can update the information in the credit file of the borrower. Lenders are least interested in knowing the reason for default they simply inform it to the agencies which give you the tag of bad credit borrower. It is also important to note that this information remains on the credit record for a longer time period.
€ Decrease Your Credit Rating
The major impact of non payment would be a reduction in your credit rating. This record of your payment history would negatively impact on your score and it automatically deducts a good number of points. It affects you more if you already don't have a satisfactory credit rating. It can lower down your score which can create problem for you in the near future.
These impacts can highly disturb your life because credit score plays quite an important role in various aspects of one's life. So, it is necessary to understand the cost of low credit score before you default on your payment.
Some serious consequences of having a bad credit rating are:
€ Trouble In Getting New Credit
It is important to understand that bad credit rating can create trouble for you when you look for a new credit deal in the future. Lenders always check the credit report of the loan applicant before offering them the loan amount and they are not interested in dealing with people having low scoring. They either reject the application or give the loan at their own terms and conditions.
€ Reduce Your Credit Limit
Low credit rating also impacts your credit limit. Lenders and credit card companies reduce the credit limit of the people having less than perfect score. It means you won't able to get the needed credit at the time of need.
These are some of consequences that affect your financial future if you have a low credit rating. So, it is advisable that you must keep your records cleans by taking the amount according to your repaying ability and repaying it with no default. Meeting payment on time assists you to have good credit which will provide you a number of benefits.
Source...