What does "default on a loan" mean?

What does "default on a loan" mean?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "balloon payment" mean?; What does "base value" mean"?; What does "buy here, pay here" financing mean? and more...

If you're defaulting on your loan, you're putting your credit rating in peril, and potentially really hindering the possibility of getting new loans and new credit in the future. What this means is that you're not paying attention to your payment schedule, you're allowing yourself to go two or three months before you make the payment and paying just before the due date. These are all things that are very dangerous. Payments may not be recognized, and therefore your credit rating is going to be very negatively impacted.