How Valley Bank Loan Payments Work and What Happens If You Miss One
How Valley Bank processes your loan payment
Valley Bank moves your loan payment through the same system most banks use: ACH, which stands for Automated Clearing House. When you set up automatic payments or make a one-time transfer, the bank pulls money from your account on the date you choose and sends it to Valley Bank's collection account. The payment usually arrives within one to two business days, though the exact timing depends on when you initiate it during the business week.
If you pay by check or in person at a Valley Bank branch, the payment posts immediately to your account, but the funds still move through ACH behind the scenes. Online bill pay through your own bank's website also uses ACH and takes the same one to two business days. The key difference is control: with automatic payments set up directly with Valley Bank, you cannot stop the payment once the processing date arrives, but with bill pay through your own bank, you can cancel up until the morning it processes.
Valley Bank considers a payment on time if it arrives by 5 p.m. Eastern Time on the due date shown on your statement. Payments that arrive after that time are recorded as late, even if only by a few minutes. If your due date falls on a weekend or holiday, Valley Bank typically extends the deadline to the next business day, but you should confirm this with your loan documents or by calling the bank directly.
Key Takeaways
- Valley Bank processes most loan payments through ACH, which takes one to two business days, so you should submit payments at least three days before your due date to avoid being late.
- A payment is considered late if it arrives after 5 p.m. Eastern Time on the due date, and late payments trigger fees and damage to your credit report within 30 days.
- You can make payments online through Valley Bank's website, by phone, by check, or in person at a branch, and each method has different cutoff times for same-day posting.
- If you cannot make a full payment, contacting Valley Bank before the due date to discuss a partial payment or temporary arrangement is far better than missing the payment entirely.
- Valley Bank may offer forbearance or a modified payment plan if you are facing a temporary hardship, but you must request this before you fall behind.
What happens when a payment is late
A late fee appears on your account as soon as the payment is recorded late. The amount varies depending on your loan agreement—some charge a flat fee (often $25 to $35), while others charge a percentage of your monthly payment (usually 5 percent). This fee is added to your balance, which means you owe more than you originally did, and interest accrues on the higher amount.
After 30 days past due, Valley Bank reports the late payment to the three credit bureaus: Equifax, Experian, and TransUnion. This report stays on your credit report for seven years and damages your credit score immediately. The damage is worst in the first few months and gradually lessens over time, but the mark remains visible to any lender who pulls your report during those seven years. A single 30-day late payment can lower your score by 100 points or more, depending on your starting score and credit history.
If you reach 60 days past due, Valley Bank may freeze your account or require you to pay the full outstanding balance immediately rather than accepting monthly payments. At 90 days past due, the bank may refer your loan to a collections agency, which means a third party takes over attempts to collect the debt. At this point, you are also at serious risk of legal action, wage garnishment, or bank account levy, depending on your state and the loan type.
How to set up automatic payments with Valley Bank
Log into your Valley Bank online account and navigate to the Payments or Transfers section. Select the loan account you want to pay, then choose "Set Up Automatic Payment" or "Recurring Payment." Enter the amount you want to pay each month—you can choose the full minimum payment, a fixed amount, or the full statement balance. Select the date you want the payment to process each month.
Valley Bank will ask you to confirm the bank account the payment should come from. If you are paying from a Valley Bank account, the payment posts immediately. If you are paying from another bank, the payment takes one to two business days. Once you confirm, the automatic payment is active and will process on that date every month until you cancel it. You can change the amount or date at any time by logging back into your account, but changes take effect on the next scheduled payment date, not immediately.
Keep a record of the date you set up automatic payments and the amount. If a payment fails because your account does not have enough funds, Valley Bank will attempt to process it again, but you will be charged a failed-payment fee (usually $25 to $35) each time. If automatic payments fail repeatedly, Valley Bank may cancel the arrangement and require you to pay manually.
Other ways to pay your Valley Bank loan
You can pay by phone by calling Valley Bank's customer service number, which is on your statement. Have your loan account number and the bank account you are paying from ready. Phone payments are processed immediately if you call during business hours, but the funds still take one to two business days to arrive. Some phone representatives can process payments that post the same day, but this is not may provide.
Paying by check requires you to mail it to the address on your statement. Mail typically takes three to seven business days to arrive, so you should mail your check at least two weeks before your due date to be safe. Write your loan account number on the check so Valley Bank can match the payment to your account. Checks are not recommended for time-sensitive payments because you have no control over mail delivery time.
In-person payments at a Valley Bank branch post immediately to your account. Bring your loan account number and a form of payment—cash, debit card, or check. Not all branches accept loan payments, so call ahead to confirm. Some Valley Bank branches charge a fee for in-person payments if you are not a customer of that branch, so ask before you pay.
What to do if you cannot make a payment
Contact Valley Bank as soon as you know you cannot make a full payment. Do not wait until after the due date. Explain your situation to a loan officer and ask about your options. Valley Bank may offer a forbearance arrangement, which temporarily reduces or pauses your monthly payment for a set period (usually three to six months). During forbearance, interest still accrues, so you will owe more at the end, but you avoid a late payment and credit damage.
Another option is a loan modification, which changes the terms of your loan—for example, extending the repayment period to lower your monthly payment. This also means you pay more interest overall, but it can make the payment manageable. Some loans offer a deferment, which pauses payments entirely for a set time, though this is less common for personal loans than for student loans.
If Valley Bank cannot offer any of these options, ask whether you can make a partial payment. Paying something, even if it is less than the full amount due, shows good faith and may prevent Valley Bank from reporting you as late. Document the partial payment in writing and ask Valley Bank to confirm in writing that they received it and that you are not in default. Keep this confirmation in case there is a dispute later.
How late payments affect your credit and future borrowing
A late payment on your credit report makes it harder and more expensive to borrow money in the future. Credit card companies, mortgage lenders, auto lenders, and even landlords pull your credit report and see the late payment. They interpret it as a sign that you are a higher risk, so they charge you higher interest rates or deny your application entirely. A mortgage lender, for example, may require a 30-day late payment to be at least two years old before they will approve you, and some require it to be seven years old.
The damage to your credit score is not permanent, but it is slow to heal. After two years, the late payment has much less impact on your score. After seven years, it falls off your credit report entirely. However, if you have multiple late payments or if the late payment leads to a collection account or judgment, the damage lasts longer and is more severe.
You can check your own credit report for free once per year at AnnualCreditReport.com, which is the official government site. Look for any late payments reported by Valley Bank and verify that the dates are correct. If Valley Bank reported a late payment incorrectly, you can dispute it with the credit bureau, and Valley Bank must investigate within 30 days.
Frequently Asked Questions
Can I pay my Valley Bank loan early without a penalty?
Most Valley Bank personal loans do not charge a prepayment penalty, which means you can pay off the loan early without extra fees. However, some loans do include a prepayment clause, so check your loan agreement or call Valley Bank to confirm. Paying early saves you interest because you owe less over time.
What if Valley Bank takes a payment by mistake or twice in one month?
Contact Valley Bank immediately and explain what happened. If the bank took a duplicate payment, they will reverse one of the payments and credit your account. If they took a payment from the wrong account or in the wrong amount, they can usually reverse it within a few business days. Keep records of all your payments so you can show Valley Bank what you submitted.
Does paying late hurt my credit even if I catch up later?
Yes. Once a payment is 30 days late, Valley Bank reports it to the credit bureaus, and that report stays on your credit report for seven years. Catching up later stops future damage, but the original late payment remains. The longer you wait to catch up, the more damage occurs—a 60-day late payment is worse than a 30-day late payment.
Can Valley Bank take money from my account without my permission?
No, unless you signed an agreement allowing them to do so. If you set up automatic payments, Valley Bank has permission to pull money on the dates you chose. If you did not set up automatic payments and Valley Bank is taking money from your account, contact them immediately and ask them to stop. You may also file a dispute with your bank to reverse unauthorized transactions.
What happens if my loan goes to collections?
A collections agency takes over attempts to collect the debt, and they may contact you by phone, mail, or email. You still owe the full amount, plus any collection fees Valley Bank added. The collections account appears on your credit report and damages your score even more than the original late payment. You can negotiate a settlement with the collections agency, but get any agreement in writing before you pay.