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Home >> Lending >> Vehicle Loans
Delinquent on Your Car Loan or Credit Card Payment
Auto Loans
If you are behind on your auto loan payments, or think you may have trouble making your next payment, you should speak to your lender immediately. Most banks have some type of skip-a-payment or loan extension program in place for qualified borrowers. Although the terms vary, most banks simply require you to come in and fill out a form. The form will require your name, account information, and the reason you are having trouble with your payments.
Lenders generally have some type of policy about approving loan extensions or skip-a-payment applications. As a general rule, banks require that your loan be at least nine to twelve months old. The lender will also probably require that you have a good payment history, meaning no payments more than thirty days late. Additionally, lenders may limit the number of months your loan will be extended or how often you can utilize the program. On average, lenders allow you up to a two month extension, and limit the loan extension to once every twelve months or twice every five years. Of course, these numbers reflect a general policy, and your lender may offer different criteria. Check with your lender as soon as you realize you may have trouble making your payment for more individualized answers.
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Credit Cards
If you are behind on your credit card payments, you have probably noticed the companies are calling you sooner than in the past. With the current credit crisis, these lenders are in a hurry to ensure that you will be making your payment. Many credit card companies are willing to work out some type of payment arrangement with you. Simply call them as soon as you realize you can't make your payment.
The credit card companies may allow you to skip a payment or defer it for a certain number of weeks. Additionally, they may be willing to waive the late payment or over-the-limit fees associated with your account. They may require you to schedule your payment in advance, but in exchange, your account might be considered up-to-date.
Much like the auto loan policy, each credit card company will have its own criteria for determining how long it is willing to allow you to put off paying your bills or how many fees they will waive. Much of this will depend on your payment history and the length of your account.
Just remember, whether you are having trouble on your credit card, auto loan, or some other installment loan, contact your lender as soon as possible. If you talk to your lender before you are delinquent, you can learn of the options that exist.
Published on BankingQuestions.com 12/15/08
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