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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?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
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. View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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