What Deferit does and doesn't do with car payments
Deferit is a buy-now-pay-later service that lets you split purchases into smaller payments over time. It does not work with car loan payments or car insurance premiums. Deferit only handles retail purchases—things you buy from online stores or in-person merchants that partner with the service. Your car payment goes to your lender (the bank, credit union, or finance company that owns the loan), and Deferit has no connection to that transaction.
If you are behind on a car payment or worried about making the next one, Deferit cannot defer it. You will need to contact your lender directly to discuss a payment plan, deferral, or forbearance—options that actually exist for car loans but come from the lender themselves, not from a third-party app.
Key Takeaways
- Deferit only works with retail purchases from partner merchants, not with loan payments of any kind.
- Your car payment is a loan obligation owed to your lender, which Deferit cannot touch or defer.
- If you need to skip or delay a car payment, you must contact your lender directly—they have their own deferral and forbearance programs.
- Using Deferit to buy something else while skipping a car payment will damage your credit and may trigger repossession.
Why your lender, not Deferit, controls your car payment
A car loan is a secured debt: the lender holds the title to your vehicle as collateral. That means your lender has legal rights to the car if you stop paying. Because of that security interest, only your lender can agree to defer, skip, or restructure your payment. Deferit has no legal claim on your car and no authority to negotiate with your lender on your behalf.
When you miss a car payment, the lender reports it to the credit bureaus and may begin collection efforts. Deferit cannot prevent that or change the terms of your loan. The only entity that can is the lender itself.
What your lender can actually offer
Most car lenders have deferral or forbearance programs built into their loan agreements. A deferral typically lets you skip one or two payments and add them to the end of the loan, extending your payoff date. Forbearance is similar but may involve a temporary reduction in your payment amount instead of skipping it entirely. Some lenders also offer loan modification, which restructures the remaining balance across a longer term.
The catch: you usually have to ask before you miss a payment. Once a payment is late, your options narrow and the damage to your credit report begins when ready. If you see a payment coming that you cannot make, call your lender's customer service line now. Have your loan number and account details ready. Be honest about your situation—lenders have heard it all and many have programs for exactly this.
The approval process varies. Some lenders can approve a deferral over the phone in minutes. Others require written documentation of hardship and may take a week or two. But the sooner you contact them, the sooner you know what is possible.
What happens if you skip a payment without permission
Missing a car payment without arranging a deferral with your lender triggers a cascade of consequences. After 30 days, the lender reports the late payment to credit bureaus. Your credit score drops, sometimes by 100 points or more. After 60 days, you may receive a formal notice. After 90 days, the lender can legally repossess the vehicle—meaning they send someone to take the car, often without warning.
Repossession is fast and expensive. Once the car is repossessed, the lender sells it at auction, usually for less than what you owe. You are then responsible for the difference (called a deficiency) plus the cost of repossession, storage, and auction fees. That deficiency becomes a judgment against you and can be pursued through wage garnishment or bank levies.
Using Deferit to buy other things while skipping your car payment does not change any of this. It only adds unsecured debt on top of a secured debt you are already not paying.
How to contact your lender about a deferral
Find the phone number on your loan statement or the lender's website. Call the customer service line and ask to speak with someone about payment options or hardship programs. Have ready: your loan number, account number, the reason you need help (job loss, medical emergency, reduced hours—be specific), and your current financial situation (income, other debts, monthly expenses).
Some lenders have dedicated hardship departments. Others route you through regular customer service. Either way, the conversation is confidential and does not affect your credit score. Asking for help is not a negative mark; missing a payment is.
If your lender denies a deferral, ask why and whether there are other options—forbearance, loan modification, or a temporary payment reduction. If they still say no, ask whether they have a formal appeal process. Document the date, time, and name of the person you spoke with.
When a deferral is not enough
If your lender offers a deferral but you know you will not be able to resume payments after the deferral ends, you may be facing a larger problem. In that case, explore whether refinancing is possible (rolling the loan into a new one with a longer term and lower payment), whether you can sell the car and pay off the loan, or whether you need to discuss returning the vehicle to the lender voluntarily.
Voluntary surrender is not ideal—it still damages your credit and you may owe a deficiency—but it is better than repossession because you avoid the repossession fees and the surprise of having your car taken. If you are considering this, talk to a credit counselor first. Nonprofit credit counseling is free through the National Foundation for Credit Counseling (NFCC) and can help you understand all your options before you make a decision.
Frequently Asked Questions
Can I use Deferit to pay my car payment indirectly?
No. Deferit only works with retail purchases from partner merchants. Even if you used Deferit to buy something and then sold it to raise cash, that cash would not be earmarked for your car payment, and your lender would still see a missed payment on your account. The credit damage happens regardless.
What if my lender says they do not offer deferrals?
Most lenders do, but if yours claims not to, ask specifically about forbearance or loan modification. If they still say no, ask for the denial in writing and consider consulting a consumer law attorney—some lenders are required by state law to offer hardship options and may be breaking that requirement.
How long does a deferral last?
That depends on your lender and the program. Most deferrals cover one to three months. Some allow you to defer multiple times in a year; others limit you to once. Ask your lender for the exact terms before you agree.
Will asking for a deferral hurt my credit?
No. Asking for help does not appear on your credit report. Only missed or late payments do. Calling your lender before you miss a payment is the right move.
What if I have already missed a payment?
Call your lender when ready. Some lenders will still work with you even after a payment is late, especially if you contact them within 30 days. The sooner you reach out, the better your options.