St. Louis-area drivers at risk of losing their car need to act quickly. For many, this means asking questions such as “Can you defer a car payment?” or even “How often can you defer a car payment?” While the answers vary for each driver and lender, there are many acceptable reasons to defer a car payment or ask for payment deferment on a car loan.
The answer to “Can you get a car payment deferred?” depends mostly on the lender and your type of car loan, whose particular practices and protocols for ensuring repayment may not allow for payment deferment on a car loan. That being said, if you have a good rapport with your lender and you are proactive about discussing your individual situation, they will likely find a way to defer your payment. Above all, contacting your lender before you miss a payment is essential.
First, let’s answer “What is a deferment on a car loan?” Simply stated, a deferred payment on a car loan means the payment you’re unable to make is sent to the end of your loan term. Some auto loan contracts have a deferment policy written into them. If you’re unsure, you can either re-visit the terms of your loan or reach out to your lender directly – you will need to contact them eventually, as their approval is required to get a deferment.
The answer depends on your lender, as each one has a unique policy regarding payment deferment on car loans. Some will only give their okay on one deferment, while others allow two or more. Wondering if the limit applies on a yearly basis or to the entire loan term? This will also vary by lender and is a great question to ask when speaking with yours.
The answer to “Can you defer a car payment?” is often “Yes,” but some will also want to know – should you defer a payment on a car loan? You’ll need to consider your situation carefully to decide. You can’t choose to miss the payment altogether as an alternative. However, maybe you have a family member or a close friend who could provide some assistance? To help you make a well-informed decision, we’ll shed some light on the various advantages and disadvantages of car payment deferment, below:
Many lenders around St. Charles will have a range of options for borrowers who are unable to make a car payment, so while asking “Can you defer a car payment?” may result in a “No,” keep in mind it’s not your only option to seek out:
The answer to “How often can you defer a car payment?” is likely only one, but as listed above, there are a number of other possibilities to seek out.
When the above options are not for you, it may be necessary to explore selling your car or another option before your credit takes a hit. Here are some alternative strategies for seeking payment deferments on a car loan:
No matter what, it is best not to avoid your lender, as this will result in repossession and be a serious blight on your credit report. While there are plenty of ways to improve a bad credit score, it can be very difficult to rebuild after defaulting on a car loan.
Whether you’re looking for answers to “What is a deferment on a car loan?” or commonly accepted reasons to defer a car payment, the Green Light Auto Credit specialists are at your service. Contact us to learn more from our team, such as the ways you might unknowingly damage your credit score or other easy tips for reducing debt.