Mini-credits are exactly what their name implies, they are small loans that you get.
No guarantee is required when you borrow with a mini-credit.
For this reason, they are usually reserved for those who need quick money to solve an eventual economic emergency.
However, the fact that no collateral is needed does not mean that you can simply withdraw and not return the money you borrowed.
You must be responsible for the payment, just as it will be a loan with a guarantee.
I invite you to see what happens if you can not pay a mini-credit.
What happens if I can not pay my mini credit?
If you can not pay your small loan, you will receive a predetermined notice warning you that, if it happens again, you could be referred to a collection agency or taken to court.
There are some steps you can take to avoid defaulting on a mini-credit, such as taking out a personal loan or getting the money with your family to make the reimbursement.
The breach of your mini-credit can have very serious consequences, so it is important to investigate before the situation gets out of control.
This is what will happen when the deadline arrives and you have not been able to face the payment:
You will be charged interest for late payment
As of the next day when the repayment period ends, you will be charged interest for late payment, these are usually very high.
In addition, they will also charge you a commission for the claim of the debt positions every time the lenders contact you.
So, the more calls you receive, the more money you accumulate in debt.
Your credit score is affected
When you lose a loan payment, your lender will report it to the credit bureaus (ASNEF or RAI).
Usually, this happens when you delay 30 days.
Having a delay in paying you mini- credit will probably cause your credit score to decrease.
So, if you have a very good credit, you could easily drop 100 points or more.
This can make it harder, more expensive or both get more credit in the future.
For example, buying a house through a mortgage loan, buying a car, a household appliance, etc.
Although it will generally take fifteen years for the late payment to leave your credit history since that is the time it will prescribe your debt.
You can also solve the problem and take the loan to good condition by making your lost payment.
Your debt goes to a collection agency
Sometimes the lender can pass your debt to a collection agency.
This does more damage to your credit history.
Also, although your lender may have called you and sent you letters, the collection agency may be even more aggressive in getting your payment.
You can go to trial
It is also possible that lenders or collection companies go to court to claim the money you borrowed.
If they win the trial, they may garnish the salary, or the bank account to pay the sentence.
The best thing for your financial health and peace of mind is that you try to pay as quickly as possible since you will avoid the large delay commissions.
And if you really see that you can not do it because the money comes to you in a few more days.
Our recommendation is that you get in touch with them and reach an agreement.
Since otherwise every day you stop paying, more money in interest will have to pay off with the mini-credit.
Or having to face more serious problems.
Are you sure you do not pay your mini-credit?
It is important to remain calm and maintain a hierarchy of debt payments.
If you have several debts, calculate which is the most expensive and pay that first, then continue down.
The more expensive debt will obviously accumulate faster and will be more difficult to control later.
Make a family budget accordingly and see if there is any way to avoid losing a refund.
Otherwise, talk to your lender before the payment date and ask if they can extend the payment date.
If you can organize it, insurance will be in exchange for a commission, but this option could prevent you from getting a very negative credit history, potentially, from a downward spiral of increasing debt.
And to finish…
Let’s be honest; the consequences for the breach of a mini-credit as well as any other financial product can be serious.
Your reputation or credit history will be adversely affected (maybe for many years) if you do not pay.
Preventing you from accessing future loans, such as a mortgage, the purchase of a car or any other item that requires financing.
You can even be sued and your salary can be garnished.