What happens if I stop paying a Wells Fargo personal loan?

If you stop paying Wells Fargo personal loan, you might be charged late fees and your credit score will drop. Other consequences of not repaying a personal loan from Wells Fargo include going into default, being hounded by debt collectors and possibly being sued.

Consequences of Not Paying Wells Fargo

Getting charged a late fee

If you don’t make your monthly payment on time, you will be charged a late fee of $39 late fee (after 10 day grace period). Wells Fargo does have a 10 day grace period, which means you will not be charged a fee unless your payment is more than 10 days past-due.

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 debt collections, as well.

Being contacted by debt collectors

When your Wells Fargo 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 Wells Fargo 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 Wells Fargo personal loan review on WalletHub.