What happens if you skip monthly payments?

It may be tempting to skip a month or two when it comes to repayments and credit obligations. After all, bills add up and sometimes money is tight, so missing a payment or two is not a big deal, right? That’s what many people think. Sorry, but that’s a wrong assumption.

Skipping even one payment can affect you negatively

Yes, missing payments for your car or house loans, credit card bills, student loan or others
WILL negatively affect your credit health! Missed payments will show up in your credit report and lower your score. Remember, banks and lenders look for a good credit score – generally 650 and above – when they make decisions about approving loans and credit applications. And to make matters worse, you’ll have to pay late fees each time you miss a payment. The more payments you miss, the more money you burn in late fees, and the harder it is to catch up on your payments.

Perhaps you’ve missed some monthly payments in the past. Is it too late to fix things? Absolutely not! There’s always a chance to improve your credit health and score, although it may take a bit of time. However, starting somewhere is better than not starting at all!

Fix things and get your credit health back on track

Here’s how to improve your credit health and score if you’ve missed payments in the past.

Step 1 – Purchase your latest MyCTOS Score report. You’ll be able to know your credit score and see exactly what payments you’ve missed in the past 12 months, then plan the best way to settle those bills.

Step 2 – Get current and stay current. Once you settle all your pending past payments, make sure to pay all your bills on time moving forward. Cultivate a habit of consistency in your repayments so your credit score can improve over time. A good way to do this is by using an auto debit payment facility. Having this in place means that you won’t have to worry about forgetting or missing your monthly repayments. An auto debit payment facility will ensure that the required payment amount (such as your monthly car loan repayment) will be deducted automatically from your chosen bank savings or current account. Check with your bank for a list of participating payee corporations to know which loan payments can be managed via auto debit. You can also set payment reminders for yourself using various apps or your existing smartphone calendar functions.

Finally, contact legitimate counsellors if you’re facing financial difficulties – for instance, AKPK provides free financial counselling for those facing difficulties with managing their payments.