Personal Loans

What happens if you don’t pay a personal loan?

When you miss a loan payment, initially you’ll typically be charged a penalty fee – often around £25. As well as this, additional charges may be included to cover the interest on the missed payment.

However, if you continue to miss payments, this record will have a determinantal effect on your credit score – making it harder to obtain certain financial products in the future.

Eventually, continually failing to pay the loan could even result in a default notice, County Court Judgement, bankruptcy, or the lender might take steps to reclaim assets.