How Tower Loan Payments Work and What Happens If You Miss One
What Tower Loan is and how payments move
Tower Loan is a personal loan company that lends money to people who may not have access to traditional bank loans. You borrow a lump sum, sign a contract that says how much you owe and when payments are due, and then make regular payments—usually weekly or biweekly—until the loan is paid off. The company charges interest on top of the amount you borrowed, which is why your total repayment is higher than the original loan.
Payments typically come out of your bank account on a set schedule. Tower Loan uses ACH transfers (automatic bank drafts) to pull money directly from your checking account on the day your payment is due. This means the money leaves your account without you having to write a check or visit a location. If you have a payment coming up, you need to make sure that money is actually in your account on the due date, or the transfer will fail and you may face fees.
The amount you pay each time depends on your loan agreement. A typical Tower Loan payment might be $50 to $200 per week or every two weeks, but the exact amount is written in your contract. If you are unsure what you owe or when it is due, your loan documents or your Tower Loan account online will show the payment schedule.
Key Takeaways
- Tower Loan payments are pulled automatically from your bank account on a set schedule, usually weekly or biweekly, so you must have funds available on the due date.
- If a payment fails because your account has insufficient funds, you will be charged a failed payment fee on top of what you already owe.
- Missing payments damages your credit score and can lead to collection action, wage garnishment, or a lawsuit depending on how long the debt goes unpaid.
- If you cannot make a payment, contact Tower Loan before the due date to discuss options like a payment plan or temporary pause rather than letting it default.
- You can pay early or in larger amounts without penalty, which reduces the total interest you pay over the life of the loan.
What happens when a Tower Loan payment is late or missed
When a payment fails—either because your bank account does not have enough money or because you do not make the payment by the due date—Tower Loan will charge you a late fee. This fee is added to what you already owe. The exact amount varies, but late fees typically range from $15 to $35 per missed payment, depending on your loan agreement and state law.
After one missed payment, Tower Loan will likely contact you by phone, email, or mail to remind you that payment is due. They may also report the missed payment to the credit bureaus (Equifax, Experian, and TransUnion), which will lower your credit score. A single late payment can drop your score by 30 to 100 points, depending on how high it was before.
If you miss multiple payments—usually after 30, 60, or 90 days of non-payment—the loan enters default. At this point, Tower Loan may turn the debt over to a collection agency, which will pursue you for the full remaining balance plus collection fees. They can call, email, and send letters. In some cases, Tower Loan or a collector may file a lawsuit against you, which can result in a court judgment and wage garnishment (money taken directly from your paycheck).
How to make a Tower Loan payment
Most Tower Loan payments are automatic and happen without you doing anything—the money is pulled from your account on the scheduled day. However, if you want to make a payment manually, you can log into your Tower Loan account online or call their customer service line to arrange a payment. Some locations also accept in-person payments if there is a branch near you.
You can pay more than the minimum amount due at any time without penalty. Paying extra reduces the principal (the amount you originally borrowed), which means less interest accrues over time and you pay off the loan faster. If you have a windfall—a tax refund, bonus, or inheritance—putting it toward your Tower Loan can save you hundreds of dollars in interest.
Keep records of every payment you make. If you pay by ACH, your bank statement will show the transaction. If you pay by phone or in person, ask for a receipt or confirmation number. These records protect you if there is ever a dispute about whether a payment was made.
What to do if you cannot afford a payment
If you know a payment is coming and you do not have the money, contact Tower Loan before the due date. Do not wait until the payment fails. Explain your situation—job loss, medical emergency, unexpected expense—and ask what options exist. Some lenders will work with you on a temporary payment reduction, a one-time skip, or a modified payment schedule.
Tower Loan may also discuss a loan modification, which changes the terms of your original agreement. This might mean extending the loan term (making payments for longer) so each individual payment is smaller, or adjusting the payment schedule to match when you receive income. A modification is not forgiveness—you still owe the full amount plus interest—but it can make payments manageable.
If Tower Loan cannot or will not work with you, look into whether you have other options. Some states have debt counseling services (often free or low-cost) that can help you negotiate with lenders or create a budget. You can find a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or by calling 211 to be connected to local resources.
Understanding Tower Loan interest and total cost
The interest rate on a Tower Loan depends on your credit score, income, and state law. Tower Loan typically charges higher interest rates than traditional banks because the people who borrow from them are considered higher-risk borrowers. Interest rates can range from around 60% to over 300% annually, depending on the state and your situation. This is why the total amount you repay can be significantly more than the amount you borrowed.
Your loan agreement will state the interest rate and the total amount you will pay by the end of the loan term. If you want to know exactly how much interest you are paying, subtract the original loan amount from the total repayment amount. For example, if you borrowed $500 and will repay $750 total, you are paying $250 in interest.
Paying off the loan early reduces the amount of interest you pay. If you can make extra payments or pay a lump sum, the interest stops accruing on the portion you have paid down. This is one of the most direct ways to lower the true cost of borrowing from Tower Loan.
How Tower Loan payments affect your credit
On-time Tower Loan payments help build your credit history. Each payment you make on schedule is reported to the credit bureaus and shows lenders that you can manage debt responsibly. Over time, a record of on-time payments can raise your credit score, making it easier to borrow from traditional lenders at lower rates in the future.
Missed or late payments have the opposite effect. A payment that is 30 days late stays on your credit report for seven years and signals to other lenders that you may not repay them. This makes it harder to get approved for credit cards, car loans, mortgages, or even rental housing. Some employers and insurance companies also check credit reports, so a damaged credit score can affect more than just borrowing.
If you are rebuilding credit after a missed payment, consistent on-time payments going forward will gradually improve your score. The negative impact of a late payment fades over time, especially if the rest of your payment history is clean.
Tower Loan payment plans and alternatives
If you already have a Tower Loan and are struggling with payments, a payment plan through Tower Loan itself is your first option. This is a formal agreement that changes your payment schedule or amount, and it is usually faster and less damaging to your credit than letting the loan default.
If Tower Loan is not your only debt, you might consider a debt consolidation loan from a bank or credit union, which combines multiple debts into one payment at a lower interest rate. This works only if you can actually get approved for a consolidation loan, which usually requires better credit than you need for a Tower Loan.
Another option is a debt management plan through a nonprofit credit counseling agency. A counselor negotiates with your creditors (including Tower Loan) to lower interest rates and create a single monthly payment plan. This does not erase the debt, but it can make repayment more manageable and stop collection calls. Be cautious of for-profit debt settlement companies, which often charge high fees and make promises they cannot keep.
Frequently Asked Questions
Can Tower Loan garnish my wages if I do not pay?
Yes, but only after obtaining a court judgment. Tower Loan must sue you, win the case, and get a court order before they can garnish your wages. This process takes months, so you have time to resolve the debt before it reaches that point. If you receive a lawsuit notice, respond to it—ignoring it makes a judgment more likely.
What if I want to pay off my Tower Loan early?
You can pay off the loan at any time without penalty. Contact Tower Loan and ask for a payoff amount—this is the exact sum needed to close the account, including any accrued interest through the payoff date. Paying early saves you interest because the loan stops accruing charges once it is paid in full.
Will Tower Loan work with me if I lost my job?
Many lenders will work with borrowers facing temporary hardship. Call Tower Loan and explain your situation before a payment fails. They may offer a temporary payment reduction, skip a payment, or modify your loan term. The key is communicating early rather than disappearing.
How do I know if Tower Loan reported my late payment to credit bureaus?
Check your credit report from all three bureaus (Equifax, Experian, TransUnion) at annualcreditreport.com, which is free once per year. Your report will show any late payments reported by Tower Loan. If you see an error, dispute it with the bureau and with Tower Loan in writing.
Can I change my payment due date?
Some lenders allow you to move your payment date to align with when you receive income. Contact Tower Loan and ask if this is an option. If they cannot change the date, ask about a payment plan that spreads payments differently across the month.