What does deferred payment mean? Deferring a payment is when you purchase something and pay for it later. ... With deferred payments, vendors and customers typically come to an agreement (i.e., a deferred payment agreement) that lets the customer take possession of an item now and pay the cost at a later date.

What happens when you defer a payment?

When you defer a payment, you're agreeing to put off that payment until a later date. For example, if you get a one-month deferment and you were originally scheduled to pay off your loan in November 2021, you'd now be paying it off in December 2021 (assuming you don't have any more payments deferred).

Does deferring payment affect credit?

Deferred payments do not negatively affect your credit history. Passed in response to the ongoing pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act made it possible for those who have been impacted to receive certain payment accommodations, such as account forbearance or deferment.