advice on Credit Union Loan

festesio

Hi Guys,

currently have a loan with my local CU.

in process of payng it off steadily, havent missed a payment yet.

In fact i've overpayed by approx €2000 in terms of what was agreed to this point, so i am ahead of myself.
This begs the question: if i were to miss a payment but would still be in payment "credit", would this count against me.

I ask as i never noticed but my bank never submitted an extension on my payments when i last extended the loan. this was last month. this meant last months payment was never made but it has not caused a reaction from them as yet. it simply shows that i am not in as much credit as before, to the tune of the payment amount.

Currently in process of renewing the payment with my bank(need new code card), but another week or two to complete, meaning this months payment will be missed(well late but that will not show on their records, just missed).

i'm curious as i requested a scenario a few months back where i could take a month or two of a holiday from payments, given my excess credit and instead of increasing the loan amount, and was given a flat no as the response.

Inadvertantly, i am now in that exact position, albeit by accident. i've explained my scenario to them and they have said a payment was fine, but i'm considering being cheeky and stretching it one more month.

Am i being silly or is it just a grey area that the banking firms will never talk about? it will simply mean i won't have to apply in a few moths for a small loan for my hols, i'l have paid for it early and in full!

Thanks for your input.

Fes

wmpdd3

I think you'd be fine but I would just transfer a little into your savings or off the loan just to show them you're alive. If they call just say you can afford to be so far in credit.

matt70iu

festesio wrote: »

Hi Guys,

currently have a loan with my local CU.

in process of payng it off steadily, havent missed a payment yet.

In fact i've overpayed by approx €2000 in terms of what was agreed to this point, so i am ahead of myself.
This begs the question: if i were to miss a payment but would still be in payment "credit", would this count against me.

I ask as i never noticed but my bank never submitted an extension on my payments when i last extended the loan. this was last month. this meant last months payment was never made but it has not caused a reaction from them as yet. it simply shows that i am not in as much credit as before, to the tune of the payment amount.

Currently in process of renewing the payment with my bank(need new code card), but another week or two to complete, meaning this months payment will be missed(well late but that will not show on their records, just missed).

i'm curious as i requested a scenario a few months back where i could take a month or two of a holiday from payments, given my excess credit and instead of increasing the loan amount, and was given a flat no as the response.

Inadvertantly, i am now in that exact position, albeit by accident. i've explained my scenario to them and they have said a payment was fine, but i'm considering being cheeky and stretching it one more month.

Am i being silly or is it just a grey area that the banking firms will never talk about? it will simply mean i won't have to apply in a few moths for a small loan for my hols, i'l have paid for it early and in full!

Thanks for your input.

Fes

I'd say you would be fine as long as you're ahead on your payments. However, don't forget that you agreed to pay monthly at least the amount agreed. What they do end up doing is piling on extra interest charges when you miss a payment.

I was about 1500 ahead on my own loan, missed a payment in december, paid in January and noticed I had been charged over 3 times the interest I normally would. Might not look to good if you ask them for a top up in the future etc.

Taking money out of your shares also reduces your future borrowing power.
They are much more accomidating than the banks i've found so I woudl always want to keep them in the good books by paying the agreed amount on time:)

festesio

Cheers Guys,

sound advice there