My FICO logo $$$$$$$$$$$ 9876 5432 1234 5678 CREDIT CARD KELLY SMITH 11/26 My FICO logo
SCORE
Skip Navigation
  • Why FICO
  • How It Works
  • Pricing
  • Education
  • Community
  • Support
  • Member Dashboard
  • Log In Log Out
  • Start Plan
 
  • Why FICO
  • How It Works
  • Pricing
  •  
  • Education
    • Credit Education
    • Credit Scores
    • What Is a FICO Score?
    • FICO Scores vs Credit Scores
    • FICO Scores Versions
    • New FICO Scores
    • How Scores Are Calculated
    • Payment History
    • Amount of Debt
    • Length of Credit History
    • Credit Mix
    • New Credit
    • How to Improve Your Score
    • How to Build Credit
    • Credit and Financial Counseling
    • Credit Reports
    • What's in Your Report
    • Credit Bureaus
    • Inquiries
    • Errors on Your Report?
    • Blog
    • Calculators
    • Loan Savings
    • Vehicle Payments
    • How Much Can I Borrow?
    • Should I Consolidate My Credit Cards?
    • Know Your Rights
    • Identity Theft
    • FAQ
    • Glossary
  • Community
  • Support
  • Member Dashboard
  • Log In Log Out
  • Our Products
    • Ongoing Credit Monitoring Track your FICO® Score & identity
    • One-time Credit Reports Be prepared for important transactions
  • How Can We Help
    • Monitor Credit & Identity
    • Mortgages
    • Credit Cards
    • Auto Loans
  • Credit Education
  • Community
  • Support
  • Our Products
    • Ongoing Credit Monitoring Track your FICO® Score & identity
    • One-time Credit Reports Be prepared for important transactions
  • Credit Education
  • Credit Scores
    • What Is a FICO Score?
    • FICO Scores vs Credit Scores
    • FICO Score Versions
    • New FICO Scores
    • How Scores Are Calculated
    • Payment History
    • Amount of Debt
    • Length of Credit History
    • Credit Mix
    • New Credit
    • How to Improve Your Score
    • How to Build Credit
    • Credit and Financial Counseling
  • Credit Reports
    • What's in Your Report
    • Credit Bureaus
    • Inquiries
    • Errors on Your Report?
  • Blog
  • Calculators
    • Loan Savings
    • Vehicle Payments
    • How Much Can I Borrow?
    • Should I Consolidate My Credit Cards?
  • Know Your Rights
  • Identity Theft
  • FAQ
  • Glossary

Estimate your FICO® Score range

Answer 10 easy questions to get a free estimate of your FICO® Score range

Estimate for Free

Get your FICO® Score for free

90% of top lenders use FICO® Scores

Get Access Now
No credit card required
View all FICO Scores & Credit Reports articles

My Deferred Status is Set to Expire — What's Next?

Since the coronavirus first started substantially impacting the U.S. economy, millions of people financially affected by the pandemic have entered into loans forbearance or deferred payment plans with their lenders. These programs are designed to temporarily suspend or reduce the amount of your monthly loan payment for a set period. There shouldn't be any fees, penalties or additional interest added to your account through this deferment, but regular interest may still accrue.

A key term to understand here is temporarily. Many of these programs granted by lenders were set up for a three to six-month period and could expire very soon. That means at the end of the period, the temporary deferred payment feature will stop, and you will be expected to start paying the loan based on the terms you and the lender agreed to when you initially set up the program.

What if your situation has not improved?

Although the unemployment rate dropped from 13.3% in May to 11.1% in June, many states are now reporting an increase in coronavirus cases. Some states have begun reinstituting shutdown measures that will impact the financial health of many. There are still millions of people without jobs or working reduced hours. Without steady employment and income, many are still struggling to pay their bills.

If you find yourself in this situation, here are two things you should do:

  1. Reach out to your lenders as soon as possible. Explain your circumstances and your need to extend the deferred payment plan or enroll in a new program. Do not assume the program terms will simply auto-renew. It is critical to have these interactions with your lender before the program expires. Not doing so could negatively impact your FICO® Scores if you miss a payment, and that missed payment could also be reported to the credit bureaus.

  2. Do your homework and be prepared to discuss the program's payback structure. Three common structures include a deferment with a lump sum payment, a deferment with partial payments or a deferment with loan term extension. Be sure to document all interactions you have with the lender and carefully review any forms or agreements before signing to help prevent unwanted surprises down the road.

If the lender agrees to enroll you in a program, the reporting of an account being in deferred or forbearance status is not considered negative by the FICO Scores. However, the information your lender will likely update on the account (such as current balance and payment status) will continue to be considered your FICO Score. As such, you should confirm with your lender on how they intend to report the account to the credit bureau.

As the coronavirus pandemic continues, reaching out to your lenders and understanding the payback structure helps you be on top of your loans. Join the myFICO Forums to see how others are adjusting to the new normal.

Image of Tom Quinn, Vice President of Business Development at myFICO.

Tom Quinn

Tom Quinn is the Vice President of Business Development for myFICO and has over 25 years of experience working with consumers, regulators, and lenders regarding credit related questions and initiatives.

Estimate your FICO® Score range

Answer 10 easy questions to get a free estimate of your FICO® Score range

Estimate for Free

Get your FICO® Score for free

90% of top lenders use FICO® Scores

Get Access Now
No credit card required

Page footer

Products

  • Home
  • Why FICO
  • How It Works
  • Pricing

Learn

  • Education
  • Community
  • Support
  • Blog

Company

  • About Us
  • Terms of Use
  • Cookie Preferences
  • Privacy Policy
  • Affiliate Program
  • Accessibility

Get Our App

  • Download iOS app on the App Store
  • fil_get
    Get Android app on the Google Play Store

Follow Us

  • Twitter
  • Facebook
  • Instagram

Credit Education

  • Credit scores
  • What is a FICO Score?
  • FICO Score versions
  • How scores are calculated
  • Payment history
  • Amount of debt
  • Length of credit history
  • Credit mix
  • New credit
  • Credit reports
  • What's in your report
  • Bureaus
  • Inquiries
  • Errors on your report?
  • Calculators
  • Know your rights
  • Identity theft
  • FAQ
  • Glossary

Copyright ©2001- Fair Isaac Corporation. All rights reserved.

IMPORTANT INFORMATION:

All FICO® Score products made available on myFICO.com include a FICO® Score 8, and may include additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.