Does deferring a credit card affect your credit?

If you request a loan deferment and your lending institution agrees to the deferral request, you're allowed to temporarily stop making payments on the loan. You don't need to worry about late payment fees or the lender reporting missed payments to your credit bureaus.

In order for you to be approved for a  deferral, you'll have to apply. The process for a loan deferment can vary depending on the type of loan you have and which creditor or loan provider you are making payments too.

  • With a car loan, the lender may indicate the arrangement is a loan extension or postponement. Each lender will have different criteria you must meet before they grant an extension HOWEVER because of the government's stimulus package and our current global status, things may be slightly different.. For example, you may need to show that you're requesting the extension due to a temporary setback, such as a medical emergency.

If you are approved for a  deferment or postponement, BE SURE to keep making your payments until you're certain that your lender or bank has approved your application and is allowing you to stop making payments.  Typically a postponement is for a set amount of time HOWEVER during this time I am now hearing a postponement or deferral is indefinite on mortgages, I am not sure about credit cards. I am waiting to hear back from Canadian Bankers Association.

Can Deferred Payments Affect Your Credit?

When a lender approves your deferment request, the lender is supposed to  report that your payments are currently being deferred to the credit bureaus. While this appears on your credit report, the deferment mark won't directly help or hurt your credit scores.

If you have missed payments prior to putting your loan into deferment, those payments won't be removed from your credit history. However, if your account was past due when you entered deferment, their impact may temporarily be overlooked  while the loan is in deferment phase but will more than likely report to your credit bureau once the note of deferral is removed from the account.

Always be sure to stay on top of your credit cause we all know that famous line from Jay-z "what's more important than money - credit!"


Samantha Brookes is the CEO and Founder Mortgages of Canada, one of the fastest growing and most reliable mortgage brokerages in the country. Samantha will be releasing her first book entitled, “Cash is Queen: 11 Life-altering Wealth Principles for Entrepreneurs & Trailblazers” where she will share her insights and tips to help anyone understand the game-changing “cash is queen” philosophy that will help adjust your mindset, remove uncertainty, and learn the “how’s” of creating your success through adapting the 11 life-altering wealth principles Samantha has used in her own life.