During most short-term loan application processes, you will agree to your repayments being collected automatically by your lender. This is called a continuous payment authority (CPA) and means your lender can automatically take repayments from your bank on a specific date – this is usually the day you get paid. You can arrange for your lender to send you reminders before the scheduled repayments are taken to ensure that you have sufficient funds in your bank account to make the repayment.
Failing to make your repayments can harm your credit rating and may incur additional charges. On the other hand, making your repayments on time shows your ability to adhere to financial agreements and help your credit score improve.
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