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Does Credit Union give repayment breaks?

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  • 13-10-2010 10:54pm
    #1
    IMC042
    Registered Users Posts: 183 ✭✭


    Just wondering if I was to take out a loan of 5000 with the credit union would they allow me to take scheduled breaks from making repayments.

    AIB allow for this up to a max of three months for say the summer or the christmas holidays but I'm not even going to ask them for the loan because its for a car and id say they'd barely give me a fiver at this stage.

    I know all credit unions are different and operate their own terms but has anyone ever heard of repayment holidays with any CU?


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    #2
    matt70iu
    Registered Users Posts: 415 ✭✭matt70iu


    IMC042 wrote: »
    Just wondering if I was to take out a loan of 5000 with the credit union would they allow me to take scheduled breaks from making repayments.

    AIB allow for this up to a max of three months for say the summer or the christmas holidays but I'm not even going to ask them for the loan because its for a car and id say they'd barely give me a fiver at this stage.

    I know all credit unions are different and operate their own terms but has anyone ever heard of repayment holidays with any CU?

    I don't think it's within their normal terms to be able to take a payment break.

    They are however extremely flexible.

    You can pay weekly or monthly. Just be aware that if they do allow you to take a payment break, they will pile on the interest.

    I have noticed that if you are a day or two later the following month in making your payment, there's a notable difference in the amount of interest they charge you.

    Could take you months longer to pay back your loan if you were to ask them for a 3 month break. Best to apply and if you get the loan ask them about it before accepting it.

    Hope this helps...


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    #3
    Abelloid
    Registered Users Posts: 3,495 ✭✭✭Abelloid


    matt70iu wrote: »
    I don't think it's within their normal terms to be able to take a payment break.

    They are however extremely flexible.

    You can pay weekly or monthly. Just be aware that if they do allow you to take a payment break, they will pile on the interest.

    I have noticed that if you are a day or two later the following month in making your payment, there's a notable difference in the amount of interest they charge you.

    Could take you months longer to pay back your loan if you were to ask them for a 3 month break. Best to apply and if you get the loan ask them about it before accepting it.

    Hope this helps...

    They won't pile on the interest, the rate stays the same.


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    #4
    IMC042
    Registered Users Posts: 183 ✭✭IMC042


    matt70iu wrote: »
    Best to apply and if you get the loan ask them about it before accepting it.

    Hope this helps...

    Thats what i'll do, thanks!


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    #5
    matt70iu
    Registered Users Posts: 415 ✭✭matt70iu


    JustinOval wrote: »
    They won't pile on the interest, the rate stays the same.

    You could be right, that's just been my experience if one is a few days later in any given month with a payment.

    Eg: you pay on the 15th of March and then the 20th of April, the amount of interest you pay is completely out of proportion.


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    #6
    tommy21
    Closed Accounts Posts: 2,419 ✭✭✭tommy21


    It might be a stupid question (particularly if you can't function without a car), but is it wise to take out a loan if you are already considering deferring it? Just devil's advocate.


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    #7
    Abelloid
    Registered Users Posts: 3,495 ✭✭✭Abelloid


    matt70iu wrote: »
    You could be right, that's just been my experience if one is a few days later in any given month with a payment.

    Eg: you pay on the 15th of March and then the 20th of April, the amount of interest you pay is completely out of proportion.

    The interest is spot on, it's just charged/added daily unlike banks.


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