What Happens if a Repayment is Unpaid?

What Happens if a Repayment is Unpaid?

Depending on when you made your application, MyLenders may find you a lender in maybe under 1 hour. There will be delays when you apply outside regular office hours.

From this point on, you and your lender will be in direct communication. The lender will then make their assessment. Access to credit checks and the money will depend on the lender.

What are Loan Costs?

Instant loans mean quick cash. But before applying, you must know what the loan costs are, for example, interest rates and loan fees. That’s how it is with applying for a loan. You repay with more than what you borrowed.

The interest rate is calculated as a percentage of the remaining balance of your loan. This is the biggest cost for any borrower. Your repayment will consist of the principal amount plus the interest amount. As your unpaid balance gets small, so does your interest payment.

Aside from interest rates, there are additional fees and charges which can be a one-off, annual, or monthly. They will simply be added to your repayments.

The Loan Application Assessment Process

The law is designed to protect borrowers from signing a loan contract with terms that are not suitable for their financial needs, loan purpose, and financial circumstances.

  1. The lender must inquire about the borrower’s financial situation and the purpose of the loan.
  2. The lender must verify and confirm the collected information.
  3. The lender must assess and decide if the loan is right for the loan applicant.

Why Your Loan Application was Unsuccessful

MyLenders is a lender-finder service. We do not make assessments and the lenders do not inform us of the result of your application. The moment our system finds you a lender, MyLenders is no longer part of the loan assessment process.

If your loan application was denied, directly contact your lender so you can ask why your application was disapproved. In general, loan applications are usually denied because you are not able to meet one of the qualifying criteria of the lender.

Even if your initial loan application was unsuccessful, you may try again with MyLenders once you are in a better financial position.

If you know that you will not be able to pay in due time, you must immediately communicate with your lender. When this happens, missing a repayment will mean additional fees. The lender may be able to help if you inform them ahead of time and not when it’s past repayment schedule. www.paydayloanstennessee.com/cities/greeneville/ The lender will help you figure out a plan so that the situation can be managed.

This is possible only if you are honest and upfront with the lender. Don’t wait until it’s the due date because the lender is not legally obliged to help you if they are not informed in advance. Then you will have no choice but to pay the additional charges.

Do You Have to Accept the Loan?

If you are dissatisfied with any of the terms on the instant loan offered to you by the lender, you have every right to reject it. You can simply tell the lender that you do not want to go ahead with your loan application and the lender will terminate your loan application.

Borrowers are often frustrated when the lender offers them a loan which is not what they applied for. While this is frustrating, keep in mind that a lender offers you a loan which based on their assessment is suitable for your financial situation. The final repayment terms or loan amounts approved may differ from what you applied for.

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