Behind on Your Car Payments: What to Do First

A missed payment is a problem you can still manage. The days right after it are when you have the most choices.

Updated Oct 26, 2026 By Lenditia Editorial Team 8-minute read First steps

In short

A payment that is a few days late usually costs a late fee under your contract but does not reach your credit reports. Once you miss a full billing cycle, the lender can report it as 30 days late, and in many states it can repossess the car as soon as the contract treats you as in default. Call your lender or servicer before the next due date and ask about a payment plan, a new due date or a pause in payments. Get any change in writing, and check whether your state gives you a right to cure before repossession.

Late fee: Set by your contract
Credit report damage: Usually at 30 days late
First call: Your lender or servicer
Repossession risk: Once you are in default

Illustration: a calendar page with a car key resting on a circled due date

What happens after a missed payment

Your retail installment contract or loan agreement sets the rules. It says when a payment counts as late, what the late fee is, and what puts you in default. A late fee is not the same as default, but many contracts treat even one missed payment as a default, and default is what lets a lender move toward repossession.

What usually happens as a payment gets later (check your own contract and your state's rules)
How late	What may happen
A few days	A late fee under the contract; not reported to credit bureaus
A full billing cycle (30 days)	The lender can report the payment as 30 days late
Any time in default	Repossession, in states without a notice or cure period

A late payment on your credit report can stay there for up to seven years and can push you into a lower credit tier, where loans cost more. Our sister site Funditia explains what credit reports contain and how lenders read them. That is a strong reason to pay before a full cycle passes, even if you can only do it a few days late.

Call your lender before the next due date

The company you send payments to is the servicer. It may be the lender itself or a company working for it. The Consumer Financial Protection Bureau's advice is to contact the lender or servicer as soon as you see trouble coming and ask what options exist. Servicers have programs for borrowers who fall behind, but they rarely offer them unprompted. Calling while you are one payment behind, rather than three, gives you more to work with.

Know your numbers. Have the account number, the amount past due, your income and what you can realistically pay each month from now on.
Explain the cause and how long it will last. A two-month gap between jobs calls for a different fix than a permanent drop in income.
Ask what programs exist. Name them: a payment plan to catch up, a due-date change or a pause in payments.
Ask what each one costs. Find out whether interest keeps accruing, whether late fees will be waived, and how the change will be reported to the credit bureaus.
Get it in writing. A written agreement protects you if the account is later reported wrong, because you can send it with a dispute to the lender or the credit bureaus.

Payment plan

You pay the past-due amount in pieces on top of the regular payment, until you are current again.

Pause in payments

Sometimes called deferral or forbearance. Payments stop for a short time; ask what happens to the skipped amounts.

Due-date change

The payment date moves closer to when you are paid. Useful when timing, not income, is the problem.

Refinance

A new loan from another lender with a lower rate or longer term. A longer term lowers the payment but adds interest. See auto refinancing.

When the lender can repossess

In many states a lender may repossess as soon as you are in default, without a court order and without warning, as long as it does not breach the peace. Other states let you keep the car by paying only what is past due plus allowed costs, either during a period after a written notice or by reinstating the loan after a repossession, called a right to cure. The state laws map shows which states have one and how long it lasts. Our page on your rights in a repossession covers what happens next.

If the car is repossessed by mistake, or a lender ignores an agreement you have in writing, you can file a complaint with the CFPB and your state attorney general. Our page on where to complain lists the agencies.

If you cannot catch up

Sometimes the honest answer is that the payment no longer fits your budget. Deciding that early saves money, because repossession, storage and sale costs are added to what you owe, and you have no say in the price the car brings at a lender's sale.

Sell the car yourself. If you owe less than it is worth, the sale can pay off the loan and leave you cash for a cheaper car. Ask whether your contract has a prepayment penalty.
Sell and cover the gap. If you owe more than the car is worth, read upside-down car loans for ways to close the difference.
Surrender it voluntarily. This avoids towing and some repossession fees, but you may still owe a balance after the sale. See voluntary surrender.
Get help with several debts at once from a nonprofit credit counselor or a legal aid office if the car loan is only one of the bills you cannot pay.

You do not need a paid middleman to ask for any of this. The lender is the only party that can change your loan, and you can request each option above yourself, by phone and then in writing.

Questions people ask

How late can a car payment be before it hurts my credit?

A late payment generally appears on your credit reports only after you miss a full billing cycle, so it is reported as 30 days late. A payment a few days late can still cost a late fee.

Will my lender let me skip a payment?

Many lenders offer payment plans, due-date changes or short pauses in payments. It is up to the lender, so ask early, ask what it costs, and get the agreement in writing.

Can my car be repossessed after one missed payment?

In many states, yes, if your contract treats one missed payment as a default. States with a right to cure either require a notice and a waiting period first or let you reinstate the loan after a repossession by catching up.

How long does a late car payment stay on my credit report?

Negative payment history can generally be reported for up to seven years.

Sources

Facts on this page were checked against these sources on October 26, 2026. Cure periods and repossession notices are set by state law; the state pages give each state's rules.