 TITLE: How Many Car Payments Can You Defer? CONTENT: What Is Auto Loan Deferment?\n----------------------------\nAuto loan deferment is when your lender agrees to let you pay a lower loan payment or not make a payment for a certain time period. Lenders sometimes refer to this as a _loan extension_ or _postponement_.\nNot every auto lender allows deferments, and those that do may have different criteria for approving one. For example, some lenders may require you be current on payments; others allow deferment even if your account is past due. The length of deferment also varies depending on your lender, but typically ranges from one to three months. With some deferments, you won't make a payment at all; with others, you'll pay only the interest on the loan during the deferment period.\nEach lender has its own deferment application process. Some build the option right into the loan agreement: All you have to do is choose the \"skip a payment\" option in your payment coupon book or on the lender's website where you normally make your payments.\nOther auto lenders ask you to submit a \"hardship letter\" to get approved for deferment. The letter explains why you're requesting a deferment and when you'll be able to start paying your loan again. Lenders review the hardship letter, check your credit score and look at your credit report to decide if you qualify for deferment. If they notice your credit score is lower than it was when you got your car loan, they may not approve your deferment.\nDeferring your payments isn't the same as eliminating them. You'll still be responsible for paying the full amount of any skipped or reduced payments after your deferment ends. These amounts will be added on to the end of your repayment period, extending your loan repayment period. Interest continues to accrue throughout your deferment, and lenders may charge fees for deferment. Before applying for a loan deferment, make sure you understand all the costs. END