Repayment
What Happens If You Miss a Loan Payment?
The timeline of late fees, credit damage, and collections — and what to do at each stage.
Missing a payment is not instant catastrophe, but consequences escalate quickly. Acting early is dramatically cheaper than acting late.
Days 1–14
Most lenders charge a late fee (typically $25–$40 or 5% of the payment) once the grace period ends. Your account is flagged internally but not yet reported to credit bureaus.
Day 30
The lender reports the missed payment to the credit bureaus. A single 30-day late can drop a strong score by 60–110 points and stays on your report for seven years.
Days 60–120
Successive missed payments deepen the damage. Around day 90, the lender may move the account toward charge-off and refer it to collections.
What to do immediately
Call the lender before you miss a payment, not after. Hardship programs, deferment, and modified payment plans exist precisely for this. Lenders prefer modification to collection.
