Loan payment holiday

l0u1se

Hi guys, was just wondering, if you take a month payment break from a loan does it affect your credit history? (Agreed payment break with the company)

Thank you

Apples2

Not if it is contractual agreement.
It will if you decide to have one anyway.

The Interest will carry on piling up though, missing two payments does not mean making an extra two at the end.

CLAPTON

l0u1se wrote: »

Hi guys, was just wondering, if you take a month payment break from a loan does it affect your credit history? (Agreed payment break with the company)

Thank you

'agreed ' is an ambiguous term; it might mean the T&Cs allow for a payment break or it might mean that the payment break was 'agreed' only when you threathen to default

opinions4u

Why do you need a payment break?

Why can't you spend less on other things?

l0u1se

I don't need a payment break, I was asking out of interest. It's nice to know that if for example something disastrous happened then I would be able to without it adversely affecting my credit rating.
I can comfortably afford to pay my loan as its my only large outgoing.

Thanks for the advice

jonesMUFCforever

A payment break means a lot more interest for you to pay.
It is not just a question of you making one extra payment at the end - the interest will roll over for 2 months (from last payment - missed payment to next payment).
If it was me I would try to save money elsewhere.

opinions4u

l0u1se wrote: »

I don't need a payment break, I was asking out of interest. It's nice to know that if for example something disastrous happened then I would be able to without it adversely affecting my credit rating.
I can comfortably afford to pay my loan as its my only large outgoing.

Thanks for the advice

Thanks for the clarity.

The answer is "it depends".

If it's some sort of arrangement to pay less due to hardship, this will impact your credit file.

If it's a contractual "benefit" of the loan then this shouldn't affect your credit file but will, as the post above suggests, cost you. Most loans don't have such a feature.

l0u1se

Thanks for all of your help