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.
A missed repayment is classified as ‘overdue’ once it’s late by more than 14 days.
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.
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.
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.
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.
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.