Unexpected events are part of everyone’s life and can sometimes cause unpleasant consequences. Paying the Student loan installment late is one of those events that create annoyance and inconvenience because it affects the reputation and creditworthiness of the contractor. The question therefore is: what happens if I pay the loan installment late? What are the consequences? Will I be reported immediately? Let us try to answer these questions.
Late payment of the installment: the consequences
When you take out a loan, whether it is finalized or not, you must pay attention to all the deadlines that characterize it. All the loan clauses are usually well indicated on the contract to avoid finding yourself in unpleasant situations. One of these may be the forgetfulness or the inability to pay a repayment installment with reference. In this case what happens?
Usually , the delay in the payment of an installment of a loan occurs after 30 days from the expiry. The bank or the financial institution can act in different ways and above all make several dunning attempts . The steps are usually the following:
- A very normal reminder ;
- Interest on arrears ;
- A report to the Crif ;
- Credit recovery ;
- Injunctive decree .
Default interest is usually the one applied most often and we are talking about a percentage that can range from 2 to 4%.
Reporting in CRIF is a natural consequence of non-payment of an installment of the loan . This involves registering in a database , which can be consulted by all credit institutions, where all the information relating to the creditworthiness of the subject is present . Registration with the CRIF will inevitably lead to conditioning in the subject’s future loan requests.
The good news, however, is that you can also unsubscribe from the CRIF !
With the Assignment of the Fifth you avoid being late with the payment of the installments.
How to avoid late payment of installments in a loan
There is a solution to avoid finding yourself in the unfortunate situation of missing a loan repayment installment : it is the Assignment of the Fifth .
With the loan with Cession of the Fifth, in fact, the subject will never forget or be late with the payment. Simply because he doesn’t have to think about it! The repayment method in the Assignment of the Fifth provides that it is the administration to which it belongs to withhold the installment directly from the monthly salary or pension and pay it to the credit institution .
For this reason , the Assignment of the Fifth is a type of loan that can also be disbursed to those who are reported in CRIF , that is, to those who have had delays in previous payments. The guarantee is in fact all in the paycheck or pension slip. Clearly the feasibility is evaluated according to each individual case but being reported in Crif does not affect the verification.