How to Get Current for a Defaulted Car Payment

When your car payment is even one day late, it's considered to be in default. Late payments can cause a variety of problems, including late fees and interest accrual. If you're at least 30 days late with a car payment, it will be reported on your credit report, which can lower your credit score. Falling too far behind in your car payments can lead to repossession of your car. To get current on your payments, you'll need to make payment arrangements with the lender. If you haven't been late before, the lender may waive the late fee as a one-time courtesy (this policy may vary from lender to lender).

Instructions

1

Ask your lender for a deferral. If you're having difficulty making your payment, check with the lender to see if you qualify for a deferral, which will push your payment back to the end of the contract. This will give you time to get the money together so that the payment can be made. The lender will provide you with the necessary paperwork to fill out.

2

Find out about an auto loan refinance. Apply with your lender or another lender to get your loan refinanced. Submit a refinance application; if the application is approved, your loan terms will change and your next payment will not be due until 30 to 45 days later.

3

Call your lender and make payment arrangements. Lenders will often take your payment right over the phone. Give the representative your bank routing number and your checking account number; the money will be taken from your bank account in approximately 24 to 48 hours. Sometimes the lender will scan the payment, which means the money is removed immediately from your checking account. If you can't afford to make the payment now, ask for a little more time.

4

Make a payment with a credit card. Many lenders accept credit cards for payments. The representative will need your card account number and the expiration date; in some cases, you'll also need to provide the three-digit security code on the back of the credit card. The representative will confirm the amount that needs to be paid, including late charges.

5

Get a confirmation number from the lender. As soon as your payment is processed, the lender will provide you with a confirmation number that serves as proof that you made your payment. Write the number down for safekeeping. Review your checking account balance to make sure the correct amount of money was taken out.