Credit Union 1 loans are a great way to fund your financial goals. If you run into financial hardship, however, you may be looking for options on how to skip a payment or change a loan’s due date to give more breathing room in your monthly budget.
To best serve our members, Credit Union 1 offers several options to assist you with qualifying loans: Skip-a-Pay¹ and changing your loan’s due date. Find out the differences between these two options and when you might want to use them.
Skip-a-Pay: What is It and When Can I Use It?
Credit Union 1 offers Skip-a-Pay¹, which is a payment deferral option that allows members to skip a loan payment on a qualifying loan. With Skip-a-Pay¹, you can skip up to two payments per year on eligible loans. This is an ideal short-term solution if you need immediate financial relief. Skip-a-Pay¹ is best used for one-off situations that affect your ability to make your monthly loan payment, such as sudden medical bills, vehicle repairs, or financial emergencies.
To be eligible for Skip-a-Pay¹, your loan needs to be in good standing. Loans that qualify for CU1’s Skip-a-Pay¹ include most auto secured loans and signature loans. Loans that are ineligible for CU1’s Skip-a-Pay¹ include: all real estate loans (including mortgages and HELOC/HELOAN), commercial and business loans, secured loans, credit saver loans, credit cards, overdraft protection loans, balloon-payment loans, past due loans, or any loan originated within the last six months.
Skip-a-Pay: What are the Advantages?
Skipping a loan payment can offer several benefits, such as protecting your credit, avoiding late fees, and freeing up cash flow for immediate financial relief. However, it is important to note that with Skip-a-Pay¹, your loan will continue to accrue interest, and the maturity date will be extended. A small fee may also apply. This fee covers the cost of processing and servicing the loan.
Due Date Change: What is It and When Can I Use It?
If your loan due date falls at an inconvenient time of the month for your budget, member can reschedule the due date on time. This can allow you to move your due date to better align with when you get paid to ensure you are able to make your payment without impacting your budget. This option will help reduce the risk of missed payments and protect your credit. This is a helpful solution if you start a new job with a different pay day. Because this change is allowed only once over the life of the loan, it is important to consider whether you may need this option in the future. Please note that with a due date change, the final loan payment may be higher. This is because shifting the payment cycle can result in additional accrued interest.
To be eligible, the loan must have already had its first payment. Not all loans qualify for a due date change. Ineligible loans include lines of credit, real estate secured loans, past-due loans, loans that have already had a due date change, and loans that have not yet made their first payment.
Should I Skip a Payment or Change My Due Date?
Before deciding, it is important to review your CU1 loan documents to help guide your choice. Both options are great at protecting your credit and providing financial relief. Skip-a-Pay¹ is helpful for short-term budget constraints that require immediate financial relief, while a due date change is more suitable for long-term financial situations that can be addressed by aligning your payment schedule with your income.
When you are ready to decide, you can submit the request through CU1’s Digital Banking under “Manage My Loan.” If you see the application available, that means you qualify for Skip-a-Pay¹ and/or Due Date Change. If you need further assistance with your ability to make a loan payment, you can contact Credit Union 1 for further support at (800) 252-6950.
