Will forbearance affect a credit score?
Forbearance requires an agreement between the borrower and the lender. Missing or delaying any payments without a documented agreement will likely hurt the borrowers credit, just as if the borrower stopped paying and went delinquent. But will forbearance affect a credit score? With proper approval, forbearance won’t affect credit, according to one of the major credit bureaus. Forbearance delays required payments but does not forgive any payments and interest continues to add to the mortgage balance. Using forbearance increases what the borrower owes.
Once in forbearance, missing payments makes exiting forbearance increasingly difficult.
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