Upholding fair and responsible lending practices has been our mission since we started scratchupay.com. To keep our standards high and protect our customers, we provide all the users with relevant information about the industry and do the following:

• We supply you with significant information about the current state of loan industry, details concerning responsible lending and the consequences of non-payments or missed payments;
• We cover these issues in a clear way so you can easily understand important details;
• We treat every customer with respect adhering to transparent relationships;
• We apply energy to provide a high-quality service and support;
• We demand from our partners to abide by Fair Lending practices.

Lending Partners

We work only with those lenders who abide by the law and are legally authorized to lend money to consumers. We take every effort to build a network of only reliable partners to ensure that you, our customer, get the services of high quality and risk nothing.

Once you are connected with a financial provider, please check details on that lender so you can ask them questions if any occur.

It’s important to remember that every lender has their own terms and conditions. Interest rates, repayments, late payments, missed payments, and loan renewals vary by lender. To know what to expect, contact your financial provider.

Impact on Credit Score

Information on your financial background is translated into a three-digit score that serves to express your creditworthiness and predict how likely you are to handle the debt in the future. The higher your score, the more chances you have to be approved for a loan with better terms. Things that may negatively affect your credit score are listed below:

• late payments,
• missed payments,
• hard credit check,
• loan renewal.

However, if your credit is less than perfect you still can get a loan.

Late Payments

We strongly recommend that you have a responsible attitude to borrowing and take a loan only when you can afford it. It is important to understand the consequences of making late payments. If you make a late payment, you’ll have to pay a fee. We do not possess information on the amount of penalty. It only becomes available when a financial provider reaches you to finalize the loan process.

Always review all the documentation before signing the loan agreement to understand any potential fees that may result from late payment.

If you feel that you can’t repay on time, get in touch with your lender as soon as possible and warn them about your situation.

Please remember that a personal loan is a short-time solution and should not be seen as a tool to cope with major financial struggles.

Missing a Payment

We encourage borrowers to pay off their debt on time. Missing a payment may result in additional fees and collection activities which may negatively affect your credit score. Each lender has their own policy regarding missed payments. We recommend that you thoroughly peruse your loan agreement as it contains all the significant information about the lender’s policy towards missed payments.

If you aren’t able to repay the loan on the due date, please contact your provider in advance to settle the issue.

Rollovers

Some financial providers offer the opportunity to roll your debt over if you are unable to repay on the due date. Note that renewing a loan is not free: you have to pay a fee to delay the repayment. The fee does not reduce the amount you owe and the rollover payments have the same interest rate as the missed payment.

Types of Renewal Policies

We work with a considerable number of lenders, and each of them has their own renewal policy. Typically, they offer two types of renewals:

• Unlimited renewals. They allow you to renew your debt on numerous occasions and are very expensive decisions.
• Automatic and borrower-initiated renewals. They allow you to renew your debt but on a limited basis.

Collection

In extreme cases when you have a delinquent payment and are reluctant to contact your lender to discuss the issue, they can resort to collection activities. Typically, they inform you about the intention to begin the collection procedure by phone, mail or email. If you still avoid communication, your lender may turn to a collection agency.

The collection practices of a particular lender are stated in the loan agreement. We encourage borrowers to read it carefully to be aware of the lender’s policy regarding the collection practices. For more information, please get in touch with your lender.