When life gives you financial challenges, a little help goes a long way. If you’re experiencing financial hardship due to an unexpected event or natural disaster, we might be able to help you with personal loan payment relief. This allows you to temporarily suspend your payments on your auto loan, personal credit card, or other personal loan while you take time to regain your financial footing.
It’s important to understand the entire loan payment relief process before applying for relief. Knowing what happens to your payments, what happens to your credit, and what happens when your relief is over is essential to having a successful experience.
Qualifying for personal loan payment relief
You might qualify for a temporary suspension of personal loan payments if you’re having short-term financial difficulties caused by:
Temporary reduction in your income
Unexpected, one-time expenses
Natural disasters, like a flood or fire
To be eligible for payment relief, you need to have a strong payment history and generally, your account should be open for at least 9 months before applying. For more information, please see our FAQs.
If COVID-19 has negatively affected your ability to earn an income and make loan payments, you may be eligible for short-term loan payment accommodation. Payment accommodation for COVID-19 may be available if your account is less than 9 months old or payment history is not strong.
Starting personal loan payment relief
Getting approved for personal loan payment relief can be exactly that—a relief. But there’s more to it than that. Understanding what does and doesn’t happen while your account is in payment relief is essential for coming out stronger.
If you’re approved, personal loan payment relief may:
Temporarily suspend your monthly payments
Extend the maturity date of your loan by the number of payments you suspended for installment loan accounts like auto loans
Personal loan payment relief doesn’t:
Stop interest from accruing on your account—meaning you will pay more interest over the life of the loan
Extend the duration of any optional insurance or coverage
If short-term personal loan payment relief still sounds like a good solution, you can get started by making an online request.
Exiting short-term payment relief? Let’s talk about long-term modification
If you’ve been in a short-term payment relief program, you’ll need to start making payments again when your relief expires. If you can’t resume your regular payments, we can work with you to see if a loan modification is possible.
For closed-end term loans, such as auto loans, a loan modification is a change made to the terms of your existing loan agreement. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
Loan modification generally requires you to have some form of income, even if it’s less than when you originally applied for your loan. There are other qualifications and eligibility requirements, so not all clients will qualify.
For open-ended accounts, such as credit cards, we have programs to help you manage your outstanding balance if you’ve already used short-term assistance. These programs require that your card is closed to future purchases, if approved, and are available for personal or small business credit card accounts.
Both types of programs generally require you to have some form of income, even if it’s less than when you originally applied for your account. There are other qualifications and eligibility requirements, so not all clients will qualify.
You can apply for an auto loan modification online.