Given how unpredictable life is, it’s not unusual to encounter financial problems that will not allow you to make timely payments.

Loan repayment always has a term, and you must try to meet it to build a positive credit history. Still, if you have unexpected difficulties, you’re going to be late, and this will lead to some consequences. So, why is it important to use a loan calculator to see how much you have to pay. Why do you always have to be on time with the repayment schedule for loan borrowing? Here are some reasons why you have to repay your loan in Kenya at the right time.

You’ll Boost Your Credit Score

Did you know that you have a credit score that pretty much dictates whether you’ll get a certain job or obtain a loan? Coming in the form of a number, this rating is one of the things that lenders use as guidance when deciding if approving your personal loans is a good idea. If the score is too low, your application might get rejected, while a high score will convince them you are worthy of receiving the loan.

It’s important for all Kenyans to pay their loans on time if they want a good credit score. Not being serious when it comes to loan repayment will be detrimental for the credit rating.

You Will Have a Good Relationship with Your Lender

Repaying your loan at the right time will give your lender a very good impression. Basically, he/she will be able to see you are reliable and always true to your word. You’ll have a better time by doing this because the lender will give a good report to the credit reference bureau and won’t affect your credit score.

Another thing to consider is using a loan repayment calculator, which will let you see how much you have to pay. This way, you can make sure that you will have the money at the right time.

One of the important things you should also take into consideration is how you communicate with your lender. Besides timely repayments, proper communication will also help build a strong relationship and not affect your credit history.

There Will Be Lower Interest Rates

Some lenders set interest rates that lead to the borrower having to pay additional sums of money besides the amount they’ve borrowed. If you make your payments on time thus building a positive credit history of yours, you won’t get such high-interest rates when borrowing from other lenders.

There Will Be no Delays

Normally, when you apply for a loan, the application should be accepted during a specific time period. However, not making payments on time could lead to delays, because it will show on your credit report. If a lender you want to borrow from sees you are always late with your payments, he/she might take a while to decide if it’s a good idea to lend you the money and might even refuse your request.

Final Thoughts

Kenyan people should always consider the loan repayment meaning – paying back the borrowed sum on time. If they want to experience no delays, have a good credit rating and low-interest rates, paying the money back within the deadline is a must.

Make sure you use a loan repayment calculator to know the amount you must pay when the time comes, and you should experience no problems.

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