You can skip a car payment, but only if your lender has a formal program for it—and most do not
Skipping a car payment without permission is a missed payment, which damages your credit and can trigger repossession. But some lenders offer payment deferral programs that let you postpone one or more payments legally. The catch: you have to ask before the payment is due, the deferred amount gets added to the end of your loan (you do not avoid paying it), and not every lender offers this option. Your contract or lender's website will tell you whether deferral is available to you.
The difference between skipping and deferring matters enormously. A skipped payment reports to credit bureaus within 30 days and stays on your report for seven years. A deferred payment, if handled through your lender's program, does not report as a miss—it straightforward moves to the back of your loan. But you still owe the money, and you will pay interest on it for longer.
Key Takeaways
- Payment deferral programs exist at many lenders but are not automatic; you must contact your lender before the payment due date to request one.
- Deferring a payment does not erase it—the amount is added to your loan balance and you pay interest on it for the remaining term.
- A missed payment without deferral approval reports to credit bureaus and can trigger repossession; a deferred payment through a lender program does not report as a miss.
- Lenders typically allow one to three deferrals per loan, and some require proof of hardship or a temporary income loss.
- If your lender does not offer deferral, refinancing or a loan modification may be your only legal alternatives to a missed payment.
How payment deferral actually works
When you defer a payment through your lender's program, you are not erasing the debt—you are moving it. The payment amount gets added to your loan balance, usually at the end of the loan term. If you have 24 months left on your loan and defer one payment, you now have 25 months of payments remaining, with that deferred amount due in month 25.
Interest accrues on the deferred amount for the entire remaining loan period. If you defer a $400 payment and your interest rate is 6 percent, you will pay roughly $12 more in interest over the life of the loan for that one deferred payment. Over multiple deferrals, this compounds.
The lender reports the deferral to credit bureaus as a deferred payment, not a missed one. This distinction matters: a deferred payment does not lower your credit score the way a 30-day late payment does. However, it still signals to future lenders that you had cash flow trouble, so it may affect your ability to refinance or take on new credit.
What lenders require before they will defer
Most lenders that offer deferral require you to call or log into your account and request it before your payment due date. Waiting until after the payment is late usually disqualifies you. Some lenders have online portals where you can request deferral; others require a phone call to their customer service line.
Many lenders ask for a reason—job loss, medical emergency, temporary income reduction. Some require documentation: a layoff notice, a hospital bill, or a letter from your employer confirming reduced hours. Others approve deferral based on your account history alone. Check your loan documents or call your lender to learn what they require.
Lenders typically cap deferrals at one to three per loan. If you have already used your deferrals, you cannot use the program again. Some lenders allow deferrals only once per year; others have no time restriction but a lifetime limit of two or three total.
The credit score impact of deferral versus missing a payment
A deferred payment does not hit your credit score as hard as a missed payment, but it is not invisible. The deferral appears on your credit report and signals to lenders that you had difficulty meeting your obligation. This may lower your score by 10 to 30 points, depending on your overall credit profile.
A missed payment—one you make without lender approval—typically lowers your score by 100 to 150 points and stays on your report for seven years. After 30 days late, it reports as a "30-day late." After 60 days, it becomes a "60-day late," which is worse. After 90 days, the lender may begin repossession proceedings.
If you are trying to preserve your credit score, deferral is the better choice. But understand that both options signal financial stress to future lenders, and both will be visible on your credit report.
When your lender does not offer deferral
If your lender does not have a deferral program, you have limited options. Loan modification is one: you contact the lender and ask to restructure the loan—lower the monthly payment, extend the term, or reduce the interest rate. This is not the same as deferral; it permanently changes your loan terms. Modification requires lender approval and usually takes several weeks.
Another option is refinancing: you take out a new loan with a different lender to pay off the existing loan. This gives you a fresh start with new terms, but it requires that you have decent credit and income to may have access to. If you are already struggling to make payments, refinancing may not be possible.
If neither deferral nor modification is available, and you cannot make the payment, contact your lender when ready to discuss your situation. Some lenders will work with you informally to avoid repossession, though this is not may provide. The worst outcome is silence—missing a payment without communicating with your lender.
What happens if you miss a payment without approval
A missed payment without lender approval begins damaging your credit when ready. After 30 days, it reports to the three major credit bureaus (Equifax, Experian, TransUnion) as a late payment. Your credit score drops, and the late payment remains on your report for seven years.
After 60 days late, the lender may begin collection efforts: phone calls, letters, and contact with a third-party debt collector. After 90 days late, most auto lenders have the legal right to repossess your vehicle. Repossession can happen without warning and without a court order in most states.
Once your car is repossessed, the lender sells it at auction. If the sale price is less than what you owe, you are responsible for the difference (called a deficiency). You also pay the lender's repossession and auction costs, which can total $1,000 to $3,000. The repossession itself stays on your credit report for seven years.
How to request a deferral from your lender
Start by finding your lender's customer service number. It is on your loan statement, your payment coupon, or your lender's website. Call before your payment is due and ask specifically whether they offer a payment deferral or skip program.
If they do, ask what documentation they need. Have your loan number ready, and be prepared to explain your situation briefly. Some lenders approve deferrals over the phone; others send you a form to sign and return. Once approved, the lender will confirm in writing how many payments are being deferred and when they will be due.
Keep that confirmation. If a dispute arises later—if the lender claims you missed a payment when you thought it was deferred—you will need proof that the deferral was approved.
Frequently Asked Questions
Does deferring a payment hurt my credit score?
A deferred payment does not damage your credit as severely as a missed payment, but it does appear on your credit report and may lower your score by 10 to 30 points. A missed payment without approval lowers your score by 100 to 150 points. If you have the option to defer, it is the better choice for your credit.
Can I defer multiple payments in a row?
Most lenders allow one to three deferrals per loan, but they usually do not allow you to defer consecutive payments. You typically have to make at least one regular payment between deferrals. Check your loan documents or ask your lender about their specific rules.
What if I defer a payment and then lose my job?
Deferral does not protect you if your situation worsens. If you lose your job after deferring, contact your lender when ready to discuss loan modification, forbearance, or other options. Do not wait until you miss another payment. The sooner you communicate, the more options you have.
Will deferring a payment extend my loan?
Yes. When you defer a payment, it is added to the end of your loan, so your final payment date moves back by one month (or however many payments you defer). You will pay interest on the deferred amount for the entire extended period, so deferral costs you money in the long run.
Can I skip a payment if I just do not have the money this month?
Not without approval from your lender. If you skip a payment without requesting deferral, it reports as a missed payment and damages your credit. Contact your lender before the due date to ask about deferral or other hardship programs. Do not wait until after the payment is late.