Right now, many people have been unwillingly thrust into difficult financial situations. It leaves some wondering how they’ll continue making payments on their cars, credit cards, or other loans they may have. As a way to relieve some financial burden, you could apply to temporarily defer your payments. We’ve broken down the ins and outs of suspending a payment to help you weigh your options.
What is a deferred payment?
Deferred payments, sometimes called payment holidays, allow you to temporarily delay or suspend payments on a loan—generally a consumer loan. If you’re experiencing financial hardship, deferring a payment could be beneficial, as it temporarily halts the burden of making repayments. It could impact you in the long run—you may end up with higher monthly payments, and your loan’s term will increase. But, it’s better than accumulating multiple missed payments and late fees.
How does a deferred payment work?
To start, you’ll need to fill out an application with your lender. Once your application is approved, you can suspend your qualifying payment, without worrying about late fees. You must continue making payments until you have verification of your application’s approval. When your deferred payment period ends, you’ll resume your regular payments.
Does a deferred payment affect your credit?
The short answer—no, a deferred payment generally does not affect your credit score. When your application is approved, your lender reports to the credit bureau that your payments are deferred. But, if you stop making payments or miss a payment due date before you’re approved, those missed payments could damage your credit. If you missed payments before you applied for a payment holiday, those won’t be removed from your credit history, either.
Are you still charged interest on deferred payments?
You may be responsible for interest that accrues while your payment is postponed. You could potentially receive a break if your interest rate only applies to your principal balance—which means you won’t be charged interest on the interest that accrues. However, once you restart payments, the interest that accrued during your payment holiday could be added to your principal balance, and your interest rate would then be applied to the new, larger principal balance—meaning even more interest could accumulate once you resume your regular payments. This all depends on your loan type and lender, so it’s best to confirm with them.
What alternatives are there?
If you ultimately decide you don’t want to defer your payments, there are other options available if you need financial support. Depending on the loan type, you could consider refinancing. Your new loan could potentially have a longer term or lower interest rates, leading to lower monthly payments. You may also consider a debt consolidation loan. Check with your lender to discuss potential alternatives.
Where do we locate the form?
Khadija — You can find the form here. The form is located on our Support page under Account Management.
Acquiring about alternatives to defer my car payment. I’m experiencing hardship
Willie — You can apply for a payment holiday if you’re having trouble making your loan payments. Click here to view the application or call 800.533.2062 if you have questions or need assistance.
I filled out for a holiday payment at the end of July. When will I hear that it has been approved?
Sharon — You can call 800.533.2062 if you have questions about your application.
I NEED TO DO A DEFFERRED PAYMENT
Sharon — You can apply for a payment holiday by clicking here.
Hello,
I would like to defer my truck payment for my 2020 silverado and my Georgias own visa card for the month of December 2024. Please email me the forms.
Thank you!
Glenn — Here’s the application to defer your car loan. For your Georgia’s Own Visa, you’ll be notified via statement message and email if you’re qualified to defer your December 2024 payment, as well as next steps.
Good morning,
I was wondering if I could get some feed back on how to defer my car payment for the month of December. I hurt my foot a week and a half ago and i have been out of work ever since. I don’t want to mess up my payment history with the bank but I need some assistance.
Thank you,
Wanda
Wanda — You can fill out this form to apply to defer your car payment. You can find this on our Support page under Account Management!
How can I defer my auto payment
Michelle — You can fill out this form to apply to defer your car payment. You can find this on our Support page under Account Management!