Does anything bad happen if I default on my car loan?

I have the money for my car loan this month, but I want to go on a bachelor trip to Vegas. What happens if I don’t pay my loan for the month?

Answer
Defaulting on your car loan is never ideal. But before you stress out, take a glance at your car loan contract.
This contract will specify how late you can be with your payments without incurring a penalty. This is known as a grace period and is usually 5-10 days. If you get your payment in within that time, you probably won’t incur any penalties.
After the grace period, the lender may not report you to a credit bureau for 30-90 days, or whatever is stipulated in your contract. However, you may incur late payment penalties and fees before you actually get derogatory marks on your credit report.
If you have to choose between essential payments and fun expenses, maybe it’s time to free up some extra cash for your budget. Have you considered that you’re probably overpaying for your car insurance?
Jerry can help you compare competitive quotes from over 50 top insurers to find hundreds of dollars in annual savings.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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