Credit score impact – the things that may affect your credit file negatively. It’s essential that you are aware that your actions or non-actions could have a lasting impact on your credit score which long term could prevent you from accessing financial products when you need them most.
Important things to remember
• Don’t borrow money if you know you will struggle to pay it back
• Don’t ignore the situation, contact your lender as your first port of call
Please be aware that if do not repay your loan at the agreed date between yourself and your lender, this will result in your lender reporting your case to the Credit Reference Agencies; which may have a negative effect on your credit score. This may negatively impact your ability to obtain credit in the future for services such as car finance, mobile phone contracts or satellite TV subscriptions. If you default, you may be charged a collection fee (which varies from one lender to another), plus interest on the balance outstanding at the interest rate payable under the agreement. You must pay your lender any reasonable expenses and costs that may be incurred in taking steps to enforce (for example, via County Court Judgments), or attempt to enforce, the lenders rights against you under your agreement.