Implications of Non Payment
Lenders and providers will follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by telephone or letter to rearrange payment, remember that non-payment can lead to extra charges which can affect your credit score. It’s important that you read the provider’s website’s charges section before finalising your offering.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates, which can affect your credit. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan on renewing or are unable to make a payment. You will most probably be charged the same rate of interest and fees for the next month on the entire amount. The renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
Frequently Asked Questions
Why was I rejected for credit?
If you’ve applied for credit only to have your application rejected then you might be wondering why that is. It’s a good idea for you to try and identify the reasons for your application being unsuccessful before you go ahead for anything else.
There are several different reasons why you may have been rejected for credit; however, these are some of the most common reasons credit applications get declined.
Misinformation on your application
Not meeting the lender’s eligibility criteria
Information on or lack thereof a credit report
You might not be deemed a ‘profitable’ applicant
You can find out more information on why you was refused credit by visiting our page.
What can I do now if I’ve been rejected?
If you do not understand why you have been rejected for the credit you have applied for, then you may contact the lender you applied with and request an explanation in writing, upon which most lenders will be happy to supply you with that information.
If you were rejected due to any of the information that appears on your credit report, then you may wish to make a conscious effort to build or repair your credit to increase your chances of being accepted.
Alternatively, there may be other more suitable options for you to pursue by comparing your options with Fablious.
Are there any fees for using Fablious?
No, our alternative platform is entirely free for you to use and compare your options for different offers and products.
Do you perform any credit checks?
No, we at Fablious do not carry out any credit checks of any kind.
However, if a lender has referred you or you wish to take out a financial product, you will have to check the terms and conditions of that provider to determine whether they perform credit checks before you apply.
Will using buy now pay later affect my credit?
When making a credit application, you may be wondering whether a buy now, pay later scheme can affect your credit score, depending on which product you choose and who you use it with.
Although many buy now, pay later providers may require that you fill out a credit application before you can use the service, many retailers don’t require that you apply formally, therefore it won’t need a hard check to be carried out. This means that it won’t leave a mark on your credit report. Check out our [Buy Now Pay Later] guide for more information about which brands use hard and soft credit checks.
It is worth noting that failure to keep up with the repayments could negatively impact your credit and you could be charged late repayment fees.
For more information on late payments, contact the Money Advice Service.
How long does it take to switch energy providers?
Many energy suppliers that operate within the UK are signed up to the Energy Switch Guarantee, meaning that to switch energy suppliers, the entire process should take you no longer than 21 days.
Can I change energy suppliers if I already have a smart meter?
Regardless of whether or not you have a smart meter (you don’t need to have one until 2024), it is within your rights that you can switch supplier even if you already have a smart meter with your current supplier.
However, switching providers may affect how your meter works, meaning that once you’ve changed companies, your smart meter will function as a traditional meter instead. In the future if you do need a smart meter or if there becomes a problem with your current meter, your new provider may arrange for you a new smart meter fitted at your convenience.
Which energy companies offer a warm home discount?
Vulnerable households who are at risk of going without heat during the winter months may be eligible for the Warm Home Discount scheme. This scheme is separate from the Winter Fuel Payment and Cold Weather Payment schemes also offered by the government and will not affect your eligibility for either of those payments.
Most of the leading suppliers in the UK offer the Warm Home Discount scheme, in addition to a few smaller firms who are also on board.
Can you use prepaid cards online and internationally?
Most prepaid cards offered in the UK by major card networks such as MasterCard and Visa are accepted widely instore and online at home or abroad, also providing additional security on all of the purchases you make using the card.
How long do contactless payments take to process?
Contactless payments, just like standard chip and pin transactions will take anything from 2 to 3 days to process. Therefore, just as you would do with your average card payments, ensure that you have enough money in your account to cover the costs of your purchases.