Responsible Lending
Our Commitment to Fair Lending
At Violet Advance, we are dedicated to protecting you from unfair lending practices. To ensure you are well-informed and treated fairly, we take the following steps:
- Providing Key Information: We offer crucial insights into the current lending landscape, responsible borrowing practices, and the implications of missed or late payments.
- Clear Communication: We present this information in an accessible and understandable manner.
- Respectful Service: We maintain transparent and respectful interactions with all our customers.
- High-Quality Support: We strive to deliver exceptional service and support.
- Demanding Fair Practices: We require our lending partners to adhere to fair lending standards.
Lending Partners
Violet Advance partners exclusively with lenders who are legally authorized and comply with industry regulations. Our goal is to ensure that you receive reliable, high-quality services with minimal risk.
Once you connect with a lender through our platform, we recommend reviewing their specific terms and conditions carefully. This includes understanding their policies on interest rates, repayments, late payments, missed payments, and loan renewals. For any questions, contact your lender directly.
Impact on Credit Score
Your credit score reflects your creditworthiness and predicts your ability to manage future debt. Factors that can negatively affect your credit score include:
- Late payments
- Missed payments
- Hard credit inquiries
- Loan renewals
Even with a less-than-perfect credit history, you may still be eligible for a loan, though all loans are subject to credit approval.
Late Payments
We urge you to borrow responsibly and ensure that you can meet your repayment obligations. Late payments typically incur fees, and details of these penalties are provided by the lender during the loan finalization process.
Always review your loan documents carefully to understand any potential late payment fees. If you anticipate difficulty in making a payment on time, contact your lender as soon as possible to discuss your options.
Remember, a personal loan is intended for short-term financial needs and should not be used to address long-term financial difficulties.
Missing a Payment
Timely repayment is crucial. Missing a payment can lead to additional fees and may trigger collection activities, impacting your credit score. Each lender has its own policy regarding missed payments, so review your loan agreement thoroughly for relevant information. Contact your lender promptly if you’re unable to make a payment to explore possible solutions.
Rollovers
Some lenders may offer the option to roll over your debt if you cannot repay on time. Be aware that rollovers involve additional fees and maintain the same interest rate as the missed payment.
Types of Renewal Policies
Our lending partners offer different renewal options, typically categorized as:
- Unlimited Renewals: Allows multiple renewals but can be costly and risky.
- Automatic and Borrower-Initiated Renewals: Provides limited renewal opportunities, often with more defined terms.
Collection Practices
If you miss a payment and do not communicate with your lender, they may initiate collection procedures. You will typically be notified by phone, mail, or email. Failure to respond may result in your account being handed over to a collection agency.
Collection practices are detailed in your loan agreement, so we recommend reading it carefully. For questions regarding collection procedures, please contact your lender directly.
Note
The information provided is for general guidance and should not be considered legal advice. For specifics regarding your loan and its terms, consult your lender directly.