CC application + non-repayments of loan

william18_2

Hello.

I have a loan with a major high street bank, and apparently (it is in the ts and cs), I am allowed not to pay my monthly repayment installment twice in each year, without this causing a problem - I just have to notify the bank in advance of the month or months when I would like not to pay the loan installment.

I have not taken advantage of this to date - I have simply paid the monthly installment each month. (Which is all to the good in the end as it means the loan gets paid off on time, rather than there being extra months when I have to pay installments to make up for the missed ones in the past.)

I am now wanting to apply for a credit card to get a 0% balance transfer deal (transferring money from a different credit card). I have checked my credit records at Equifax and Experian - which show the monthly installments being paid.

If I opt not to pay the loan installment for the next 2 months in this particular year (which would help my financial position), I guess this will show up on the credit reference agency records and could even look like I have 'missed' two payments...

Even if it doesn't look like I have missed the payments, I guess taking advantage of this 'non-pay' option doesn't help me in my desire to get a good balance transfer card??

Thanks in advance!

William

opinions4u

I'd be surprised if a contractual facility was disclosed as a missed payment, but you'd need to check with the lender.

What they will be doing is extending your loan term and charging additional interest. Reason enough not to do it.