What does curtailment mean on a car loan?

When you take out a car loan the dealership will evaluate your credit score before determining the car’s financing terms. If your credit score is too low, you may be given a higher interest rate and have to pay for more months of car payments than you would have on a loan with a lower interest rate. Determining how much you may have to pay each month is known as “curtailing.” Depending on the terms of your loan, your lender may be able

What does curtailment on a car loan mean?

When a lender decides to curtail a car loan, it means they've decided to take away your ability to drive your car. This is typically done when you fail to make payments on the loan for a certain period. It can also happen if you owe more on the loan than the value of the car. Typically, the lender will issue a notice to the car's registered owner that your car will be sold.

What does curtailment mean on a car loan meaning?

When a lender allows you to defer making payments on your loan on a car, it's called car loan curtailment. Deferment is a temporary pause on your payments so you don't have to pay them while you're going through a period of financial hardship. If you decide you want to resume your payments after the deferral period ends, you'll need to pay a small cancellation fee known as a recurrence.

What does curtailment mean on a car payment?

If you've ever had to pay for more than you can afford, you know that it can be incredibly stressful. This is especially true if you have other debt, such as a revolving credit card balance. One way to ease the burden is to put your car on a car loan. However, you could run into issues like late payments or worse, a damaged car.

What does curtailment mean on a car lease?

First, let’s define what the term “curtailment” means. When you lease a car, most companies will take control over how much you can drive per month. That means when you add up the miles you drive, your allowable miles will subtract from the total sum. If you go over your allotted miles, you’ll need to pay more to get additional miles.