What happens if you miss a loan payment?

If you miss a loan payment, the lender will typically charge a late fee, and your account becomes delinquent. The missed payment is usually reported to credit bureaus after 30 days, which can significantly lower your credit score. The longer the payment goes unpaid, the more damage to your credit. If you continue missing payments, the lender may send the account to collections, charge off the debt, or in the case of secured loans like a mortgage or auto loan, begin repossession or foreclosure proceedings. Interest and penalties can also accumulate, increasing the total amount owed. Contacting your lender proactively before missing a payment is advisable, as many offer hardship programs or payment deferrals.