What are the consequences of defaulting on a single payment loan?

Single payment loans carry responsibilities similar to those of any loan agreement. You must pay the balance in full by the maturity date. Since the loan has only one payment, there is no "missed payment" or "late payment." If you miss the due date, you have defaulted on the debt. This significantly damages your credit. In addition to a drop in your score, you will have a default notice on your credit record for as many as ten years, depending on your state. If you placed any collateral on the loan, you may have to forfeit the collateral as terms of your default. 


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