Which term describes missing a payment or making a late payment?

• A. Bankruptcy
• B. Consequence of default
• C. Delinquent
• D. Deferrment

Answer: (D)

Missing a payment or paying late puts the loan into delinquent status. Delinquent describes the situation where payments are past due, and it often leads to late fees and a negative impact on your credit report and score. It’s different from bankruptcy, which is a legal process for debt relief; and from a plain consequence of default, which is what can happen after delinquency when the lender takes steps like collection efforts or accelerating the loan. Deferment, on the other hand, is a formal postponement of payments granted by the lender and does not mean the account is delinquent. So the best term for missing or late payments is delinquent.