What happens if I miss a personal loan payment?

The sequence after a missed payment: First, most lenders allow a 10-15 day grace period before charging a late fee ($15-$40 or 5% of the payment, whichever is less). At 30 days past due, the lender reports a 'late payment' to credit bureaus. At 60 days, a second report; 90 days, a third. At 120-180 days, many lenders charge off the account (write it off as a loss) and sell it to a collections agency.

Credit impact: A single 30-day late payment is the most damaging event short of bankruptcy. On a 720 FICO score, a 30-day late can drop 60-100 points. The impact fades over 7 years but never fully disappears until it drops off your report.

If you know you'll miss a payment, call your lender before the due date. Many lenders offer hardship programs: a short-term payment deferral, a reduced-payment plan, or a temporary rate reduction. These are not always advertised and require you to call and ask. A deferral doesn't go on your credit report; a missed payment does.