PSA: Do NOT opt for deferred payments...

gtfoxy · 09-15-2020, 12:39 PM

Unless it is absolutely necessary. People have been opting for this due to banks offering it because of the Kung Flu. The Huge downside is a lot of banks look at those deferments as late payments on credit.

Our business is tied to financing pretty heavily & we’ve already started seeing the ramifications of this in terms of denials.

Expunge · 09-16-2020, 07:36 AM

Not that I would.. but damn.. that is sleazy.

TRZ06 · 09-16-2020, 03:15 PM

I did it on my student loans for 3 mths and it had no negative effects on my credit score. I am still above 800.

I think it just depends on what you are deferring and the terms of the deferment.

gtfoxy · 09-17-2020, 01:16 AM

Quote:

Originally Posted by TRZ06

I did it on my student loans for 3 mths and it had no negative effects on my credit score. I am still above 800.

I think it just depends on what you are deferring and the terms of the deferment.

Our most recent case the lender requested the deferrer supply a letter stating lendee did not enter into a deferment agreement, & that if he had he will be denied.

It doesn’t effect your score. It shows up as the loan is zeroed as well a payments. It’s a “Insider” indentifyer that the lendee has entered a deferment agreement. It doesn’t show up as a derogatory entry, therefore it doesn’t impact overall score, but it is a red-flag.

WhiteMale · 10-05-2020, 01:01 PM

I was interested enough in forebearance when that was put in place as if you know just tack that on the back end of the mortgage but then I looked in to it. Pretty easy to get but then it was due all at once, deferred meant deferred, not tacked on the end of the loan. I had no reason to need something like that but I thought shifiting a payment or two to the back end of the loan sounded enticing but like I said forebearance was something I wanted no part of.

Vegas Bound · 10-05-2020, 02:35 PM

Pay cash.

ArthurJGuy · 11-25-2020, 03:40 PM

This is flat out illegal for them to do. It is not a late, it is a deferment.

Mr_Draco · 11-25-2020, 10:47 PM

Quote:

Originally Posted by ArthurJGuy

This is flat out illegal for them to do. It is not a late, it is a deferment.

There is nothing illegal about what they are doing.

Stingr69 · 11-29-2020, 09:15 AM

Deferred payment usually means a big interest charge by the end. The deferred payments are typically treated like another separate loan where the interest is accrued all the way to the end of the original loan. No principal reduction over the entire life of the second loan. Think about that for a moment....That could be a long time away (and "surprise" a lot of additional money owed) because you never paid the principal down like you did with the original loan.

09-15-2020, 12:39 PM	#1
gtfoxy Account Suspended Drives: '21 Wild Cherry ZL1 Join Date: Aug 2018 Location: WI Posts: 2,082	PSA: Do NOT opt for deferred payments... Unless it is absolutely necessary. People have been opting for this due to banks offering it because of the Kung Flu. The Huge downside is a lot of banks look at those deferments as late payments on credit. Our business is tied to financing pretty heavily & we’ve already started seeing the ramifications of this in terms of denials.

09-16-2020, 03:15 PM	#3
TRZ06 Drives: 22' Porsche PDK GT4 Join Date: Mar 2018 Location: Bay Area Posts: 2,013	I did it on my student loans for 3 mths and it had no negative effects on my credit score. I am still above 800. I think it just depends on what you are deferring and the terms of the deferment. __________________ Current: 22' Porsche PDK GT4 (MCS 2-way remote dampers) Previous: 18' NFG 2SS *1LE* (ZL1 1LE solid rear cradle bushings & Corsa Exhaust) 16' F80 M3 (Ohlin R/T Coilovers) 13' Audi TTRS (APR Stage 1, MSS Springs) 09' C6 Z06 08' E90 M3 06' 335i (KW V2 Coilovers) 03' C5 Z06

09-16-2020, 07:36 AM	#2
Expunge Drives: 2013 ZL1 M6, '99 Tahoe 2Dr Sport Join Date: Mar 2013 Location: South of Houston, TX Posts: 890 View My Garage	Not that I would.. but damn.. that is sleazy.

10-05-2020, 01:01 PM	#5
WhiteMale Drives: 23 ZL1 A10 Rapid Blue Join Date: Aug 2020 Location: MO Posts: 1,983	I was interested enough in forebearance when that was put in place as if you know just tack that on the back end of the mortgage but then I looked in to it. Pretty easy to get but then it was due all at once, deferred meant deferred, not tacked on the end of the loan. I had no reason to need something like that but I thought shifiting a payment or two to the back end of the loan sounded enticing but like I said forebearance was something I wanted no part of.

10-05-2020, 02:35 PM	#6
Vegas Bound Account Suspended Drives: 2013 Sparkly Red One Join Date: Dec 2018 Location: Hospitality State Posts: 2,558	Pay cash.

11-25-2020, 03:40 PM	#7
ArthurJGuy Drives: Camaro ZL1 Join Date: Nov 2020 Location: Las Vegas, NV Posts: 30	This is flat out illegal for them to do. It is not a late, it is a deferment.

11-29-2020, 09:15 AM	#9
Stingr69 '69 Owned Since '79 Drives: '69 Z/28 LeMans Blue w/White Join Date: Oct 2008 Location: LR AR Posts: 1,847 View My Garage	Deferred payment usually means a big interest charge by the end. The deferred payments are typically treated like another separate loan where the interest is accrued all the way to the end of the original loan. No principal reduction over the entire life of the second loan. Think about that for a moment....That could be a long time away (and "surprise" a lot of additional money owed) because you never paid the principal down like you did with the original loan.

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