Quick answer

Lenders can either report a loan under an accommodation/forbearance code or report missed payments. If your servicer reports the account as an approved forbearance or accommodation and not delinquent, your score often won’t drop. If they report missed payments, those entries can lower your score. Always get the reporting promise in writing and monitor your reports.

How reporting typically works

  • Lender agreement vs. missed payments: When you request relief, insist on a written agreement that describes how the servicer will report the account to credit bureaus. Some lenders report accounts as “in forbearance” or use an “accommodation” code; others simply report a 30/60/90+ day delinquency if payments are skipped without an agreement.
  • Credit bureau treatment varies: Credit bureaus accept whatever information furnishers (lenders/servicers) submit. Bureaus do not independently decide to mark an account in forbearance — they rely on the servicer’s codes and dates. (Consumer Financial Protection Bureau: https://www.consumerfinance.gov)
  • Scoring models: FICO and VantageScore use the reported payment history. If a lender reports that payments were missed, scores will likely fall. If the account is reported as current or under an accommodation, the immediate score impact can be avoided.

Real-world examples and my experience

In my practice I’ve seen two typical outcomes:
1) A mortgage servicer places a borrower in forbearance and reports an accommodation code; the borrower’s score remains stable because no delinquency is recorded.
2) A borrower pauses payments without a formal agreement and the account is reported 30/60/90 days past due; the credit score drops and a late payment appears on credit reports.

Example: during the COVID-19 pandemic many servicers used special accommodation reporting for mortgages and federal student loans under CARES Act guidance. That helped prevent score drops for many borrowers—but those policies were temporary and depended on the servicer’s reporting choices. (See CFPB guidance.)

Special cases to know

  • Mortgages: Mortgage servicers often offer documented forbearance plans and may use accommodation codes. Even so, interest typically continues and missed payments may be added to the loan balance later. See our guide on when mortgage forbearance turns into a modification for details: When Mortgage Forbearance Turns Into a Modification.
  • Student loans: Federal student loan relief during declared emergencies followed special reporting rules; private student loans vary by servicer. Read more about student loan forbearance vs. deferment here: Student Loan Forbearance vs Deferment: Long-Term Consequences.
  • Private loans and credit cards: Reporting is inconsistent—some creditors report an accommodation code, others report the account as past due.

What actually affects your credit score

  • Reported delinquency (30+ days late) is the main driver of score decline.
  • A properly reported accommodation/forbearance that keeps the account current typically won’t generate a late-payment mark.
  • Long-term consequences come from interest capitalization, increased balances, or a switch to modification/rehab that may change payment terms.

Actionable steps to protect your credit

  1. Get the relief agreement in writing and confirm exactly how the lender will report the account to the bureaus.
  2. Ask the servicer to use an accommodation or forbearance code where available and record the start/end dates.
  3. Check your credit reports from all three bureaus at AnnualCreditReport.com and within 30–60 days after the arrangement begins. (AnnualCreditReport.com: https://www.annualcreditreport.com)
  4. Dispute any inaccurate reporting directly with the bureau and the furnisher if they report incorrectly.
  5. Keep documentation: emails, letters, and the forbearance agreement—these are essential if you must dispute errors.
  6. If needed, seek free or low‑cost help from a HUD-certified housing counselor (for mortgages) or a non‑profit credit counselor.

Common mistakes and misconceptions

  • Myth: All forbearances damage your credit. Reality: Properly reported accommodations often avoid late-payment marks.
  • Mistake: Assuming verbal promises are enough—always get written confirmation about reporting.
  • Pitfall: Not checking reports soon after relief begins; errors are easier to fix early.

Related reading

Authoritative sources

Professional note

In my 15+ years working with borrowers, clear written agreements and early monitoring prevent most reporting surprises. Lenders’ reporting practices differ, so the outcome depends mostly on the servicer’s actions and what they tell the bureaus.

Disclaimer

This article is educational and does not constitute personalized financial, legal, or credit-repair advice. For guidance about your specific loans, contact your servicer or a qualified financial counselor.