09 Jul 2021

Does Deferring a Mortgage Payment Hurt Credit?

A homeowner experiencing financial hardship can apply for a loan modification or deferment. If the lender approves your request to defer a mortgage payment, it won’t hurt your credit score. By law, lenders cannot place the loan in default. The repayments in deferral do not show up as late either.

Your repayments in deferral, however, show up as paused on your credit report. If a financial institution takes a look at your credit history, they’ll see the pause. Depending on why they’re taking a look, they might ask you questions about your finances. A car loan lender, for example, has to consider what your finances will look like once the repayments kick in again.

If you take on additional debt, you must be able to repay it and your mortgage repayments. All lenders have access to proprietary tools, such as an online car loan calculator, to help them determine an applicant’s financial viability. You can do the same for your financial records. 

Even though a mortgage deferral does not count against you, it shows up on your credit record. When your repayments begin again, the note drops off the report. 

Deferring a Mortgage Payment and Credit Score Conclusion

Lenders allow homeowners to defer a mortgage repayment.  Lenders understand that a homeowner can experience financial hardship at least once during a 30 year period. Deferring a mortgage payment doesn’t negatively impact your credit report. Homeowners who find themselves in hardship can contact Mortgage House. Our loan specialists use our innovative tools to find alternative financial solutions.


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