Credit guide: Missed repayments
What do overdue repayments do to your credit score?
When you miss a repayment deadline by more than 14 days, your missed repayment turns into an overdue repayment.
This means two things. First, you will probably owe a late fee. Second, it could affect your credit score negatively – which can make it harder to get a loan in future.
What is an overdue repayment?
A missed repayment is classified as ‘overdue’ once it’s late by more than 14 days.
How does an overdue repayment affect your credit score?
An overdue repayment gets listed on your credit report and will stay there for 2 years.
Since your credit score is based on the information in your credit report, overdue repayments could hurt your score.
Why should you care about your credit score?
Nearly every time you apply for a loan, credit card or a utility service, such as a mobile plan, your provider looks at your credit score. The lower your credit score, the harder it is to get your application approved.
A high credit score, on the other hand, can increase your chances of getting approved and you may also be offered a better interest rate.
Do overdue repayments permanently affect your credit score?
An overdue repayment stays on your credit report for two years, after which it will go away.
Good credit habits, such as repaying on time in the future, will also help to balance out the impact of an overdue payment.
You have an overdue repayment. What should you do?
Pay the overdue repayment as soon as possible to minimise late payment fees and the impact on your credit score.
Repayments of more than $150 that are more than 60 days late turns into defaults, which will stay on your credit report for five years.
What happens if you can't pay?
If you are struggling to meet your MONEYME repayments, please get in touch with us. We have options available and are here to work out a payment plan with you.
Learn more about your credit score
You can check your score for free in the MONEYME app. It only takes a minute, and you will get personalised insights as well as tips on how to improve your score.