Missed a Car Payment? 4 Ways to Never Miss One Again

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For all those people who don’t set a reminder for the car installments or loan payment may wonder one or the other day ‘what happens if you miss car payment’? Well, it depends for how long you have not paid the loan payment and not paying even after the active reminder could impose the penalty or additional interest.

You may default on your auto loan and may be stressed about the future course of payments. You need to know some steps that can help you to comply with on-time payments

Life always corresponds to some unexpected events where your stake in a financial journey can also deviate. Your financial credibility may stumble owing to the hindrance you may face while committing to a car loan payment. You can miss the car payment of your car loan while you are struggling to make ends meet or are just delaying the matter out of your busy schedule. The scene can persist for some time when you may try to cope with your car loan repayments.

“The sooner, the better”, as soon as you realize the burden of missed payments can have on your overall car loan journey, you can try to emphasize the importance of making on-time payments. If you are currently struggling to make a car loan pay off or commit to the loan installments, you can nurture your knowledge with this blog from Carsfast to ease your journey ahead.

What happens when you miss a car loan payment 

Whenever you are dealing with an outstanding loan, the ideal way to pay off the amount is by making monthly installments for a stipulated term, as agreed between the lender and the borrower. Owing to some financial crunch or swamped schedule, a high rate of interest on your car loan, or any negligence on your part, you may fall short in ascertaining your validity on a regular basis when you fail to make a monthly repayment. If the state continues for you and you are unable to pay the required amount at the end of a month, you may receive a reminder from the lender to clear your dues.

Once you fail to act as per your requirement, the late payment may be charged on your car loan due which you can land on the defaulter’s list, provided you miss the payment for three months or 90 days. Moreover, most of the people think ‘what happens if you miss one car payment Canada’ , in this case you will send a reminder regarding the payment and warning to be consistent with future payments.

If you want to secure an auto loan with the blessing of advantages and perks, you can choose Carsfast to vouch for your financial pouch.

Impact of missing a car loan payment

A default in making regular payments can have certain impacts on your car loan payment journey as well as your credibility as a borrower:

  • Credit score: When you are missing your monthly payments, your credit history can also get affected. Your repayment history as a borrower can get altered to a bad impression which can be reflected in your credit scores as well. As your credit score loses momentum and faces a lower curve, your financial ventures in the future can also get affected. A credit-driven economy like Canada ventures a good outcome based on the good credit score reflected in a person’s credit history.
  • Higher interest rate: Provided you continue to make successive attempts of not making a car loan payment, you can land into a default which can lead to a higher interest rate on your car loan along with extra fees of repayment.
  • Car repossession: If you are confirmed in the default list of borrowers, lenders may try to repossess the car. You can still make a way to clear the car loan after repossession where you need to revisit the loan contract and make up for the missed payments.

Considering the impact it can render, it is of utmost importance to be persistent with car loan payments. You can achieve the feet by following the 4 main steps listed in the blog.

One more reminder that if you still look around for an answer for how many car payments can you miss before repossession’ then it is just 2-3 consecutive. 

Automatic payments for a car loan 

In the modern technological world, technology and accessories correspond to a luxurious and easy way of life. In terms of a car loan payment, you can also utilize the option of an automatic payment which can direct your future journey of never missing a payment again. In contemporary times, almost every lender gives you the option to set up your automatic bill pay through an online system.

This online automatic system allows you to select the amount you want to pay on a certain date and the amount is automatically deducted from your account. As the payments are fixed with car loans, the procedure can work easily for you where you can reach the end of the tunnel by paying off a car loan early when you are regular.

Set reminders for car loan payments 

While you may have a lot on your plate to adhere to, keeping the due date of your car loan at the back of your mind may become a challenging task. Here comes the trick, you can set some alerts and reminders that can remind you about your financial commitment. Requesting your financial institutions to remind you of your due dates by sending your text alerts or email notifications can always strike your memory.

Furthermore, you can also keep your phone updated with reminders to never allow you to skip loan payments.

Car loan account management and 50/30/20 rule


If you are lacking behind in your monthly payments, it’s time to fold your sleeves up and be cognizant of your future due dates. You should be aware of the impact it renders on your overall financial credibility and the car loan, and you should come up with a routine to follow every month. You can decide on a common day to review your bills and settle them by the right date.

Say, for example, you choose every Saturday or Sunday morning to go through all your statements and settle them at the right time. In this way, you are not only managing your car loan account but also making a habit of financial organization. Moreover, budget planning is another preset to always keep an amount affixed to pay your car loan. The 50/30/20 rule of budgeting is a general rule of financial planning where you arrange your income in three parts; 50% of which is settled for needs including car EMIs and utilities, 30% for your wants, and the rest 20% for savings and investments.

Customize your personal calendar

While the technological equipment can deliver you notice of remembering your due dates, you can still make your memory a better service for you. You can start making some notes of all your due dates for all your bills, where you can keep a track of them every month while also calculating your due amount in your hands. Updating your personal calendar can be the right fixture to fix your mind at the time you need to make a car loan payment as visual memory always has an upper hand.  


By reading the article closely you even have the answer to most asked query ‘what happens if you miss your car payment’.

If you find yourself too consumed by the work and find the pattern hard to comply with, you can also turn to third-party professional managers who can organize your bills and clear out your outstanding at the right time. Nevertheless, the most important thing is to never miss a payment and also avoid late payments to keep your financial worthiness worth considering. 

Frequently Asked Questions (FAQs)

Can one missed payment affect my credit score?

When it comes to credit score, even a single missed payment can have an impact on it. Late or missed payments can have a greater effect on your credit if you are having a high credit score. However, a missed or late payment won’t be added to your credit report before 30 days.

What happens if you miss a car payment by one day?

Missing your car payment by one day won’t significantly affect your credit or financial creditworthiness as usually there is a grace period for car loans. A grace period can last for a week or two, and you can reach out to your lender in a stipulated time to cover the payment.

How many car payments can you miss before repossession?

While the time bar depends on the lender, two or three consecutive payments can lead to the chances of repossession in general cases. This can lead to significant damage to your credit. It is better to handle a single missed payment by talking and sorting out the matter with your lender.

How long does it take to recover from missed payments?

Generally, late or missed payments won’t be added to your credit report for at least 30 days when you have the chance to withstand your credibility. However, if your late payment stays as such, it can remain on your report for 7 years, and only after this period, it can be removed.

How long can you miss a car payment before it affects your credit?

As your payment history corresponds to your credit history, any late or missed payment can set a default on it. However, a late payment won’t be added to your credit report for at least 30 days and you can recover from this situation. Having consecutive missed or late payments can further deteriorate your credit score.

What happens if you miss 6 car payments?

In most cases, if you are falling behind on your car loan payments for 2-3 months, lenders may repossess your car. When you continue to miss your car payments, you may eventually end up in default on the loan where you may be charged with penalties, fees, and interest charges built on your account.

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