If you stop paying a Navy Federal Credit Union personal loan, your credit score will drop and you could default on the loan, causing even more significant credit score damage that lasts for years. Other consequences of not repaying a loan from Navy Federal Credit Union include being hounded by debt collectors and possibly being sued.
Consequences of Not Paying a Navy Federal Credit Union Personal Loan
Damaging your credit score
If your payment is more than 30 days late, your credit score will suffer. Such late payments will stay on your credit report for 7 years.
To see how a late payment may damage your credit score, check out the free credit score simulator on WalletHub.
Defaulting on the loan
Going into default means you violated the terms of your loan agreement by not paying the bills, which is very bad for your credit score. Once your loan goes into default, your debt is more likely to be sent to collections, as well.
Being contacted by debt collectors
When your Navy Federal Credit Union loan goes into default, a debt collector will contact you to try to receive payment. It’s imperative to know your rights when dealing with collections.
Possibility of being sued
If Navy Federal Credit Union or other debt collectors can’t receive payment from you, they may sue you. However, they have legal grounds to sue you only if your state’s statute of limitations allows them to.
For more information, check out the full Navy Federal Credit Union personal loan review on WalletHub.
This answer was first published on 06/22/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
