GM Financial's Payment Deferral Program

GM Financial does offer payment deferral options, but not a traditional "skip a payment" program where you simply postpone one month's payment to the end of your loan. Instead, GM Financial handles payment relief through loan modification, which restructures your loan terms rather than letting you skip a single month without consequence.

If you contact GM Financial and explain financial hardship, they can defer your payment by adding it to the end of your loan term or spreading it across remaining payments. This means you are not skipping the payment—you are moving it. The deferred amount still accrues, and you will pay it eventually, usually with interest.

The program is designed for borrowers facing temporary hardship: job loss, medical emergency, or unexpected expense. GM Financial reviews each request individually, and approval depends on your account history, current loan status, and the reason for the request.

Key Takeaways

  • GM Financial offers payment deferral through loan modification, not a skip-a-payment program that erases a month's obligation.
  • Deferred payments are added to the end of your loan or spread across remaining payments, so you pay them later with interest.
  • You must contact GM Financial directly to request deferral; the program is not automatic and requires approval based on hardship.
  • Deferral typically works only if your account is current or only slightly behind, not if you are already in default.
  • The deferred amount may affect your loan payoff date and total interest paid over the life of the loan.

How to Request Payment Deferral from GM Financial

Call GM Financial's customer service at the number on your loan statement or bill. Have your account number and loan details ready. Explain your financial hardship clearly—job loss, reduced income, medical bills, or other temporary setback. The representative will ask about your current income, expenses, and how long you expect the hardship to last.

GM Financial may ask for documentation: recent pay stubs, proof of job loss, medical bills, or a written explanation. Provide what they request within the timeframe they give you. Do not wait; the sooner you contact them, the sooner they can review your request and prevent a late payment from being reported to credit bureaus.

If approved, GM Financial will send you a written agreement showing the new payment arrangement. Read it carefully to understand when payments resume, how much you owe, and whether interest continues to accrue on the deferred amount.

What Happens to Your Loan When You Defer a Payment

When GM Financial defers your payment, the amount does not disappear. It is added to your loan balance or spread across your remaining monthly payments. If added to the balance, your loan term extends—you will make payments for a longer period. If spread across remaining payments, each future payment increases slightly.

Interest continues to accrue on the deferred amount. You will pay more total interest over the life of the loan than you would have without deferral. The exact cost depends on how much is deferred, your interest rate, and how long the deferral extends your loan.

Your credit report may show the deferral as a modification or hardship arrangement. This is less damaging than a late payment, but it still signals to future lenders that you requested relief. Some lenders view modifications neutrally; others may affect your ability to refinance or take on new credit shortly after.

When GM Financial Will and Will Not Approve Deferral

GM Financial is most likely to approve deferral if your account is current or only one payment behind. If you are already in default—typically two or more months behind—deferral becomes harder to obtain. At that point, GM Financial may require a different arrangement, such as a loan modification that includes catching up on arrears, or they may pursue collection.

Approval also depends on your reason for requesting deferral. Temporary hardship—a job loss you expect to recover from, a medical emergency with a clear end date—carries more weight than chronic inability to pay. If you have requested deferral multiple times in the past year, GM Financial may deny a new request or offer a different solution.

Your payment history matters. If you have been reliable for years and this is your first request, approval is more likely. If you have a pattern of late payments or previous deferrals, the company may view you as a higher risk.

Alternatives if GM Financial Denies Your Request

If GM Financial will not approve deferral, ask whether they offer a forbearance agreement. Forbearance temporarily reduces or pauses payments without extending the loan term as much as deferral does. It is typically shorter—30 to 90 days—and is meant for borrowers in acute hardship.

Another option is loan refinancing through a different lender. If your credit score has not dropped too far, you may refinance your GM Financial loan with another bank or credit union at a lower rate or longer term, which lowers your monthly payment. This does not skip a payment but makes ongoing payments more manageable.

If you are facing repossession, contact a credit counselor through the National Foundation for Credit Counseling (NFCC). They offer free or low-cost advice and may help you negotiate with GM Financial or explore other options you have not considered.

How Deferral Affects Your Credit Score

A payment deferral reported to credit bureaus will lower your credit score, but less than a late payment or default would. The deferral shows as a modification or hardship arrangement on your credit report. Most credit scoring models treat this as less severe than missed payments.

However, the impact is real. Your score may drop 50 to 100 points depending on your current score and credit history. If you are trying to refinance, buy a home, or take on new credit within the next 6 to 12 months, the deferral will be visible and may affect your terms or approval odds.

The deferral stays on your credit report for seven years from the date it is reported, though its impact weakens over time. After two years of on-time payments following the deferral, most lenders will view it less negatively.

Frequently Asked Questions

Can I skip one month of payments without calling GM Financial?

No. If you do not pay, GM Financial will report the missed payment to credit bureaus after 30 days, which damages your credit score. You must contact them before your payment is due to request deferral. Waiting until after you miss a payment makes approval much harder.

Will deferral stop GM Financial from repossessing my car?

Deferral can prevent repossession if you are current or only slightly behind and you request it before the company moves to repossess. If repossession has already begun or your account is severely delinquent, deferral alone may not stop it. Contact GM Financial immediately if you are at risk.

How many times can I defer a payment?

GM Financial does not publish a limit, but repeated deferrals in a short time frame will likely be denied. Most lenders view deferral as a one-time or occasional tool for temporary hardship, not a recurring option. If you need deferral more than once a year, your underlying financial situation may require a different solution.

What if I cannot afford payments even after deferral?

If deferral does not solve your problem, explore refinancing to lower your payment, or speak with a credit counselor about your options. In severe cases, you may need to consider selling the vehicle or surrendering it to avoid repossession, which has less damaging credit consequences than a forced repossession.

Does deferral mean I own the car free and clear after the loan ends?

No. Deferral extends your loan term, so you will still owe the full amount plus interest when the new term ends. You own the car free and clear only after you have paid off the entire loan balance, including any deferred amounts.