Does a personal loan hurt your credit score

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Does a personal loan hurt your credit score

You dont normally repay using a cheque or by ringing up with your bank details. Instead, the lender will automatically take the loan amount, plus interest, direct from your bank account on the agreed day of repayment.

This is a process known as Continuous Payment Authority (CPA). Its your job to ensure there is enough money in your account to cover your repayment on the agreed date. If theres no money to pay the loan. Lenders will usually try to take the money from 5am on the day of collection.

If theres no money in the account, or not enough to cover the whole debt, they will keep trying to collect payments for as long as it takes to recover the entire amount.

Does a personal loan hurt your credit score

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Does a personal loan hurt your credit score