What Is Borrower Default?

When someone borrows money and doesn’t pay it back as promised, it’s known as a default. Anyone can default on a loan, including individuals, companies, and even countries.

What Happens When A Loan Defaults?

When a loan defaults, a debt collection agency often gets involved in order to acquire the unpaid funds. Borrower default can harm your credit score, which makes it harder for you to get a loan in the future. A long-term default can even lead to having your property seized. So make sure you can repay any money you borrow before accepting a funding offer.