Forbearance
A temporary agreement allowing a borrower to pause or reduce payments during hardship, without the loan being treated as delinquent. Interest typically still accrues on the balance.
Full definition
Forbearance is a lender-granted accommodation that pauses or reduces a borrower's payments for a defined period (often 3-12 months) without treating the loan as past-due. The borrower's credit is protected from late marks during the forbearance window. Interest typically continues to accrue and is either added to the balance or repaid through extended terms after forbearance ends. Forbearance is more common on student loans and mortgages than on personal loans, but some personal-loan lenders offer hardship-program equivalents.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Installment loanA loan repaid in fixed monthly payments over a set term. Personal loans, auto loans, and mortgages are all installment loans.
- Revolving creditCredit you can repeatedly draw on up to a limit, with a minimum monthly payment based on the current balance. Credit cards and HELOCs are revolving.
- Prepayment penaltyA fee some lenders charge if you pay off the loan before the scheduled end of the term. Most U.S. personal loans do not have one.
- Late feeA fee charged when you don't make a loan payment by its due date. Typically $15 to $40 depending on the lender and state.
- DelinquencyMissing a scheduled payment by 30 days or more. Reported to credit bureaus and a major negative factor in credit scoring.
- DefaultFailure to repay a loan according to its terms. Usually declared after 90 to 120 days of missed payments, depending on lender and product.
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