Rapid Finance on 26 October 2022

Sometimes, missing a car loan repayment is unavoidable. Despite your best intentions, things can happen – but knowing how to deal with unexpected situations can be the difference between smooth sailing and poor financial health. 

One question we often get asked by Rapid Finance customers is, ‘does it matter if I fall behind on a car loan repayment, if I then catch up later on?’ That’s why we’ve put together this handy guide about loan repayments and how you can make the best financial decisions for your unique situation. 

Isn’t missing a loan repayment and then catching up again okay?

So you missed a car loan repayment last month due to unexpected circumstances…but that’s okay - you’ll just catch up next month, right?

Well, when it comes to paying back a loan, the lender you’re borrowing money from is just like any other business. They’re there for you as a customer, but they’re also there to make money. 

From the perspective of a car loan lender, when you miss a repayment (even if you plan to catch up in the future), it costs them money because they have to spend time and resources chasing it up. When it escalates to a vehicle repossession, it can cost the lender even more.

Will a missed payment show up on my credit report?

In Australia, if you have a loan from a bank or financial institution and pay your loan repayment more than 14 days after the due date it can be recorded on your credit report, under a set-up called comprehensive reporting. (This is where the lender reports your payment history on your credit file for up to a 2-year period) A default can then be recorded on your report by any credit provider if you miss a payment more than $150 that is overdue by 60 days or more. Before doing this, the provider must have taken steps to collect all or some of the debt. 

What can I do if I can’t afford a repayment?

Before entering into a loan agreement, assess whether it will be affordable for you and your lifestyle. Use our car loan repayment calculator, personal loan repayment calculator or our home loan repayment calculator to work out how much you can affordably borrow and repay. If you’re not sure, why not give the Rapid Finance team a call on 1300 467 274? We have a range of loans available that are tailored to your personal circumstances. From bad credit loans to equipment loans, we’ll always try to match you with the loan that best suits you.

The best thing you can do to increase your chances of success is to set up a direct debit for each week, fortnight or month to ensure you don’t forget a payment. 

Communication is key

Sometimes, late or missed payments are unavoidable. At Rapid Finance, we recommend that anyone who is having trouble paying back their repayments on a car or personal loan talk to their provider straight away. Most lenders have procedures in place to help customers with repayments. 

Being proactive is the best way to approach a situation where you are likely to miss a repayment. Often, lenders are willing to work with you to create a payment plan that suits you and them. Customers who avoid lenders due to late or missed payments often end up with a substantial default on their credit file. 

Need a fresh set of wheels? Have you considered a wholesale network vehicle from Rapid Finance?

Did you know that, through our extensive wholesale network, we offer customers a one-stop shop to help you source the perfect vehicle for your needs?

Through our network, we will do extra checks on your behalf, including checking that the vehicle is in great condition.

We will also check:

  • That there is no money owing on the vehicle.

  • That the vehicle has not been a repairable write-off.

  • That the vehicle has not been in any serious accidents. 

  • We will check if everything works on the vehicle.

  • We will get a roadworthy for the vehicle.

  • We will do a detailed inspection of the vehicle. 


Find out more info about our wholesale network vehicles.