What Happens If You Miss a Personal Loan Repayment?

Missing a personal loan repayment can be stressful, particularly if you are unsure about the fees, credit-reporting consequences or what your lender may do next.

We believe it is important that you understand your options and act before an overdue payment becomes more difficult to manage.

A single late payment is not automatically the same as a formal credit default. However, leaving it unresolved may result in additional fees, repayment-history reporting or debt recovery action.

In this guide, we explain what may happen after a missed loan repayment, how it could affect your credit history and the practical steps you can take.

What Happens When You Miss a Loan Repayment?

When a scheduled repayment is not made, the amount will generally become overdue.

Your lender may contact you, ask you to make the payment and charge any applicable fee permitted under your credit contract.

The exact consequences can depend on:

• The terms of your loan contract.
• How late the repayment is.
• Whether you have missed previous repayments.
• Whether the lender reports repayment history information.
• Whether you contact the lender and agree to another arrangement.
• Whether you are experiencing temporary or ongoing financial hardship.

The most important step is to check what happened and contact your lender promptly.

The earlier you make contact, the more options may be available to help you address the missed repayment.

A Possible Missed Loan Repayment Timeline

The following timeline is a general guide only. It is not guaranteed, and your lender’s procedures and the terms of your credit contract may differ.

For Australian credit-reporting purposes, a payment may generally be recorded as missed when it is made more than 14 days after its due date.

Repayment history information can remain on your credit report for two years.

The 14-day threshold is not an interest-free, fee-free or contractual grace period. Your repayment remains due on the date specified in your contract, and applicable fees may arise from that original due date.

Could You Be Charged a Late-Payment Fee?

Your lender may charge a late, dishonour or failed-payment fee when that fee is permitted under your credit contract.

The amount and the circumstances in which it applies should be set out in your agreement or the lender’s fee information.

For our unsecured Medium Amount Credit Contracts, a $35 failed-payment default fee applies when you fail to make a scheduled repayment.

We do not charge account-keeping or other regular fees.

You can review our current loan costs to understand the interest, establishment fee and other costs that may apply to our loans.

Do not assume that paying your next scheduled instalment will automatically resolve an earlier missed payment.

Ask your lender to confirm:

• The total amount currently overdue.
• Whether a fee has been added.
• How any payment you make will be allocated.
• Whether your future repayment dates or amounts will change.

Can a Missed Loan Repayment Affect Your Credit Score?

A missed repayment may affect your credit history and how a future credit provider assesses an application.

Credit providers may report repayment history information showing whether you made your repayments on time.

A payment may be treated as missed for this purpose when it is made more than 14 days after its due date. Repayment history information can remain on your credit report for two years.

This does not mean every missed payment will cause the same change to every credit score. Credit-reporting practices and scoring systems vary.

However, a lender assessing a future application may consider information such as:

• Missed or late repayments.
• Outstanding debts.
• Formal defaults.
• Existing credit commitments.
• Recent credit applications.

Resolving the overdue payment promptly may help prevent the situation from progressing further, although it will not necessarily remove repayment information that has already been reported.

Is a Late Repayment the Same as a Credit Default?

No.

A late repayment and a formal default listing are different.

A credit provider may generally disclose a default when:

• The payment has been overdue for at least 60 days.
• The overdue amount is at least $150.
• The required notices have been sent.
• The applicable notice periods have passed.

The credit provider must send notices requesting payment and warning that it intends to disclose the default before the listing can be made.

A listed default generally remains on your credit report for five years.

If you later pay the debt, the listing normally remains but should be updated to show that payment has been made.

This is one reason you should open correspondence from your lender and keep your address, email address and phone details up to date.

What Should You Do After Missing a Personal Loan Payment?

Taking action early may give you more options and reduce the risk of the payment developing into a larger debt problem.

1. Check Why the Repayment Failed

Review both your bank account and your loan account.

The payment may have failed because of:

• Insufficient funds.
• A changed or closed bank account.
• A cancelled direct debit.
• An incorrect repayment reference.
• A banking or processing issue.

Confirm:

• The repayment due date.
• The scheduled repayment amount.
• The amount currently overdue.
• Whether a fee has been added.

Do not give your bank login details, password or security codes to anyone who contacts you unexpectedly.

Use the contact details shown in your credit contract or on the lender’s official website.

2. Contact Your Lender Promptly

Tell your lender that you missed the repayment and explain whether the issue is temporary or likely to continue.

You may want to ask:

• How much is currently overdue?
• Has a fee been charged?
• Can I make the payment on another date?
• Will changing the date affect later repayments?
• What financial hardship assistance is available?
• Can you confirm any arrangement in writing?

Moneysmart recommends asking for help early because more options may be available before the problem becomes larger.

Your lender must consider a valid financial hardship request, although the arrangement offered will depend on its assessment of your circumstances.

3. Work Out What You Can Realistically Afford

Review your income and essential expenses before offering a catch-up payment or agreeing to a payment plan.

Essential expenses may include:

• Housing.
• Food.
• Medicine and healthcare.
• Electricity, water and other essential services.
• Necessary transport.
• Childcare or education costs.
• Existing priority debts.

Avoid agreeing to a repayment amount simply to end an uncomfortable conversation. An arrangement you cannot maintain may lead to another missed payment.

You should also avoid automatically taking out another high-cost loan to cover the overdue repayment.

Doing so could add interest, fees and another repayment obligation without addressing the underlying shortfall.

4. Ask About Financial Hardship Assistance

You can generally give your credit provider a hardship notice if you are unable, or expect to be unable, to meet your repayment obligations.

Hardship assistance may involve:

• A temporary repayment reduction.
• A deferred payment.
• A payment plan.
• A change to the repayment schedule.
• Another temporary or permanent variation.

The available options will depend on your circumstances and your lender’s assessment. The exact arrangement you request is not guaranteed.

Your lender may ask:

• Why you are experiencing difficulty.
• What income you currently receive.
• What your major expenses are.
• How much you can realistically afford to repay.

Moneysmart advises that you should only agree to an amount you can afford.

Provide accurate information and keep copies of your request, any supporting documents and the lender’s response.

5. Get the Arrangement in Writing

Ask the lender to confirm:

• The repayment amount.
• The new due dates.
• Whether fees or interest will continue.
• How the change affects the loan term.
• What will happen to the overdue repayment.
• When the arrangement will be reviewed.
• What you should do if you cannot maintain the arrangement.

Continue checking your loan statements and bank account to make sure the agreement is being applied correctly.

Does Requesting Hardship Assistance Affect Your Credit Score?

A financial hardship arrangement may appear temporarily on your credit report as financial hardship information.

Your credit report does not show the reason you entered the arrangement.

A credit reporting body is also prohibited from using financial hardship information to calculate your credit score.

Depending on the arrangement:

• A temporary arrangement may be recorded using the indicator “A”.
• A permanent variation may be recorded using the indicator “V”.

Financial hardship information is generally removed after the applicable 12-month reporting period.

Moneysmart states that a financial hardship arrangement does not affect your credit score, although the existence of the arrangement may appear temporarily on your credit report.

This is different from leaving repayments overdue without contacting your lender.

In certain circumstances, a credit provider may be restricted from listing a default while it is considering a hardship request and for a period after communicating a refusal.

What Happens if You Continue to Miss Repayments?

If the debt remains unpaid and you do not make another arrangement, your lender may continue contacting you and could eventually begin debt recovery action.

The debt may be referred to a collection agency. Depending on the circumstances, legal action may also be considered.

Debt collection is lawful, but debt collectors must comply with consumer protection and privacy laws.

They must not:

• Use physical force.
• Coerce you.
• Unduly harass you.
• Mislead or deceive you.

If a debt collector contacts you:

• Ask for details of the debt in writing.
• Keep records of calls, emails, letters and messages.
• Check that the amount being claimed is correct.
• Do not agree to a payment you cannot maintain.
• Explain that you are experiencing financial hardship, when applicable.
• Ask for any payment agreement in writing.
• Seek financial counselling or legal help when necessary.

If you do not recognise the debt or disagree with the amount, you can ask for a copy of the credit agreement and a statement showing how the balance was calculated.

Seek free legal assistance promptly if you receive court documents.

Missing a Repayment With Us

We offer unsecured Medium Amount Credit Contracts.

Our current product information is summarised below.

Our published loan amounts, terms and fees were current as at 30 July 2026.

Every application is subject to our eligibility requirements, affordability assessment and approval.

We assess applications individually and consider whether the proposed credit contract would be unsuitable based on the information available to us.

If you have missed one of our repayments or believe you will be unable to make the next one, contact us rather than leaving the issue unresolved.

You can use our contact page for general support or access our customer support portal.

Our dedicated hardship and complaints phone number is 07 5646 5969. Support requests can also be submitted online.

Where Can You Get Free Help?

A financial counsellor can help you understand your options, review your budget and communicate with creditors.

Financial counselling services are free, independent and confidential.

You can contact the National Debt Helpline on 1800 007 007.

Consider seeking support when:

• You cannot afford essential living expenses.
• You have missed payments to several lenders.
• You are using one form of credit to repay another.
• A debt collector has contacted you.
• You have received court documents.
• Your financial difficulty is likely to continue.

A financial counsellor may also be able to help you prepare a hardship request or negotiate with your creditors.

How to Reduce the Risk of Another Missed Repayment

Once you have dealt with the immediate overdue payment, a few practical changes may help you identify future problems earlier.

You could:

• Schedule repayments shortly after your income is received.
• Set a calendar or banking reminder before each due date.
• Check your account balance before an automatic payment.
• Update your lender when your bank account or contact details change.
• Keep a small buffer for irregular expenses when possible.
• Contact your lender before the due date when you expect a problem.
• Review whether the repayment remains affordable after changes to your income or expenses.

These steps cannot prevent every unexpected event.

However, they may make it easier to identify a shortfall and ask for assistance before the repayment becomes overdue.

Frequently Asked Questions

Is There a Grace Period for a Missed Personal Loan Repayment?

Do not assume that your loan has a grace period.

Your credit contract determines when the repayment is due and when a fee may apply.

The 14-day credit-reporting threshold is not a contractual grace period. Your payment remains due on the date shown in your agreement.

Will One Missed Loan Repayment Ruin My Credit Score?

Not necessarily.

The effect depends on how late the payment is, whether information is reported and the credit-scoring system being used.

However, a payment made more than 14 days after its due date may be recorded as missed in your repayment history.

It is generally best to resolve the issue promptly.

Can I Make a Partial Payment?

Your lender may accept a partial payment, but it might not bring your account up to date.

Ask:

• How the payment will be allocated.
• What amount will remain overdue.
• Whether you need a formal arrangement for the remaining balance.

Can I Change My Repayment Date?

Some lenders may agree to change a repayment date or create a temporary payment arrangement.

This is not automatic.

Contact your lender and obtain confirmation before relying on a different repayment date.

Will a Hardship Arrangement Appear on My Credit Report?

It may appear temporarily as financial hardship information.

The reason for the arrangement is not shown, and a credit reporting body cannot use the hardship information to calculate your credit score.

Should I Take Out Another Loan to Cover a Missed Repayment?

Another loan may add interest, fees and an additional repayment obligation.

Before borrowing again:

• Speak with your existing lender.
• Review what you can realistically afford.
• Consider contacting a free financial counsellor.

Borrowing again may not be appropriate when you are already experiencing difficulty meeting repayments.

Take Action Early

Missing a personal loan repayment may result in fees, lender contact and credit-reporting consequences.

The longer the payment remains unresolved, the greater the risk that it develops into a formal default or debt recovery matter.

Start by checking the total overdue amount and contacting your lender.

If you cannot afford the payment, ask about financial hardship assistance and only agree to an arrangement you can realistically maintain.

If you have an existing loan with us and need support, you can contact our team through our official contact and hardship options.

Before considering a new loan, review our loan costs, frequently asked questions and eligibility requirements.

Consider whether the costs and repayments are appropriate for your circumstances before applying.

The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. It is not tailored to the specific circumstances of any individual. Before acting on the information, you should consider whether it is appropriate for you, having regard to your objectives, financial situation and needs.