Loan Repayment

Once the borrower is awarded the loan, the process of repayment begins. Some borrowers may be lucky enough to have a few months between the time they are given the loan and the time they make the first payment. This is handy because it allows borrowers the opportunity to get their new budgets into place and prepare them for the long road of paying the loan off.

The borrower will most likely receive a coupon book or a payment statement once a month with the information on how much to send and where to send pre-printed on them. The statement will also include the due date and if there are any grace periods, service charges or late fees.

It is best to make the monthly payment by the due date and no later than the date listed on the grace period. Making a late payment will not only incur more fees that the borrower may not be able to handle, but also affect their credit rating if not taken care of in a timely manner. Even though a borrower may pay their loan every month, slow payments are as dangerous to their credit as late and non-payment.

Some lenders offer borrowers the ability to pay their bill online, over the phone using an electronic funds transfer, or set up a monthly automatic withdrawal. Borrowers should ask their lenders if this option is available and how to use.