Most people don’t know this yet, but even just one late loan payment could have adverse effects on your overall credit. In fact, you may have a pretty hard time trying to recover from that simple miss-step. Don’t ever overlook any of these simple debt repayments having the notion that missing one payment or repaying late won’t hurt you much. It could, and probably will.
Fortunately, there are ways you can ensure you don’t fall victim to late loan repayments. Here are some four simple steps and measures you can take to ensure you never have to miss any other loan repayment dates and end up damaging your credit score.
1. Sign up for auto-pay
This may probably be the best methods you can use to ensure you never miss any loan repayments or end up paying late. Auto-pay is the process whereby you authorize your credit card company to automatically deduct some amount from your checking account at certain periods to which go directly into your loan repayments. This ensures that all your repayments are on time. You don’t even have to worry about the hustle of having to remember to repay your loan all the time. Everything is automated.
You only need to ensure that you don’t pay below the minimum repayment amount otherwise you may end up in hot soup, explains Matt Schulz, a senior industry analyst of the CreditCards.com organization.
One requirement you must ensure this process though is that you must always have sufficient about of funds in your checking account if you want this method to work. You may end up incurring additional fees if you don’t have enough funds in your bank account. You may have to deal with an overdraft, or even late loan repayment if the payment fails to go through.
2. Set up reminders
Okay, so you may be the type who likes getting their hands busy and working and probably prefer repaying your loans manually. Then this is the best way you can go about it. You may not really rely on your memory to help you make your repayments on time. But setting up calendar reminders or even signing-up for online alerts can do it for you.
You can reschedule your dates on the calendar for recurring meeting and set your devices to sync up so you are always alerted no matter which device you are on at the time.
3. Make weekly payments
You may also opt for the weekly repayment plan where you make small repayments to reduce the overall monthly repayments which are done once a month. This method can also be pretty convenient compared to the monthly repayments as you never have to stress about the overall total billing. You may also end up spending a lot through the month only to realize that you are short of cash to make your monthly repayments which are another great reason to opt for this method instead.
4. Call your credit card issuer
The first thing you need to do if you miss any loan repayment due dates is to make the payment immediately and then follow that up by calling your credit card issuer. Acting quickly and early enough can help remedy the situation. You may have a free pass if you have a genuine reason for making the late payment.