Looking to give your budget a break this month? Northwoods Credit Union’s Skip a Payment program is designed to make it easy for you to skip a monthly loan payment when you need extra cash. Whether you’re managing unexpected expenses or just want some financial breathing room during a busy time of the year, here’s what you need to know about skipping a payment with us.
What Exactly is Skip a Payment?
Skip a Payment allows qualified credit union members to skip a monthly payment on eligible loans. It’s a great tool if you’re facing unexpected expenses or simply want to free up some cash for other timely priorities. Here’s how it works.
How Does Skip a Payment Work?
When you use our Skip a Payment option, here’s what you can expect:
- Pause a Monthly Payment: You’re allowed to skip one monthly loan payment, with no penalty, as long as you meet eligibility requirements.
- No Impact on Credit Score: Skipping an approved payment will not affect your credit score, but always make sure payments resume the next month to avoid any issues.
- Available for Certain Loan Types: This option is typically available on personal, auto, and unsecured loans. Mortgage and home equity loans generally don’t qualify, so check with us for details.
- Small Fee: A small processing fee may apply to skip a payment, which will be explained upfront.
- Interest Continues to Accrue: While your monthly payment is paused, interest on the loan still accrues, which could extend the life of your loan slightly.
Am I Eligible For Skipping a Payment?*
To take advantage of Skip a Payment at Northwoods Credit Union, you need to meet these basic requirements:
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- Loan in Good Standing: Your loan account should be current and in good standing.
- Application Approval: You’ll need to submit a simple application, which we can review and give you a decision quickly.
- Limited to One Skip per Year: In most cases, the Skip a Payment program can be used once a year per eligible loan.
How to Apply for Skip a Payment At Northwoods Credit Union*
It’s easy to apply for Skip a Payment:
- Submit Your Request Online or In-Person: Start by filling out a Skip a Payment application form on our website or visiting one of our branches in Cloquet, Moose Lake, or Floodwood, Minnesota.
- Confirm Loan Eligibility: We’ll review your loan details to make sure it qualifies for the program.
- Pay the Processing Fee: A small fee may be due with your application.
- Enjoy Your Payment-Free Month: Once approved, you’ll skip your next scheduled payment!
*Northwoods Credit Union is not able to extend this offer to the following types of loans; mortgage, line of credit, workout, holiday, overdraft, wise choice auto financing (Extending the term of auto loans with GAP Insurance may affect future GAP claims. Review your GAP Insurance agreement for more information.), loans with late payments in the past six months and/or loans opened within the last 6 months. Only 1 Skip-A-Pay (SAP) allowed per loan, per year. If refinanced or traded in-SAP may not be used until after 1st payment is made.Other restrictions may apply. Membership eligibility required.