Life can throw financial curveballs, and sometimes, you may need a little breathing room. Whether it’s an emergency, a special occasion, or just a month to catch up, our Skip-A-Payment* option provides qualifying credit union members with a convenient solution.
Kasha Wilson, assistant vice president of retail financial services at Centris Federal Credit Union, is here to guide you through Centris Skip-a-Payment, from how it works to determining if it may be right for you.
What Is Skip-A-Payment?
Skip-A-Payment is a program that eligible Centris members can use once per calendar year to postpone payment on their loan for one month. After using Skip-A-Payment, payments continue as outlined in the loan agreement.
It’s important to note that loan deferment, loan deferral, and Skip-A-Payment are terms often used interchangeably, referring to the same concept.
The Basics of Skipping a Loan Payment
After you request to use Skip-A-Payment and get approved, you will not have to make the eligible loan payment that month. “Instead,” Wilson says, “the loan term is extended by one month, allowing you to take a break from the payment and resume regular payments after the skipped month.” Interest will continue to accrue on the principal balance during the skipped month.
Centris’s Skip-A-Payment Program Overview
Our Skip-A-Payment program is designed for members who have a qualifying loan and are in good standing.
Qualifying loans include:
- Auto Loans
- Personal Loans
- Motorcycle Loans
- Boat Loans
- RV Loans
Wilson notes that “while members may use Skip-A-Payment once per calendar year, the program is available all year to choose when deferring a payment is right for them.”
Why You Might Consider Skipping a Payment
There are numerous reasons you might opt to skip a loan payment. “We want to offer Skip-A-Payment to our members when they need it most, for whatever reason they may have,” says Wilson. “While we don’t require a reason for you to complete the application, there are instances where skipping a loan payment could be beneficial and some situations where another option might be more suitable.”
Common Situations Where Skipping Can Help
“Members should think about using Skip-A-Payment as a short-term solution to help during the unexpected,” recommends Wilson.
Skip-A-Payment serves as an excellent solution to use the funds that usually go toward your loan to cover unexpected costs, such as car repairs and medical bills. It may also help free up some extra cash with seasonal spending increases, such as during the holidays or back-to-school shopping. Additionally, it can be beneficial if you encounter financial difficulties due to a temporary job loss.
When Skipping a Payment Might Not Be the Best Choice
There are some instances when you should not use Skip-A-Payment. The Skip-A-Payment option is not a long-term financial solution. If you find yourself frequently falling behind on payments and are questioning whether you can afford a loan, Skip-A-Payment likely isn’t the right choice.
“If this happens, come into a branch or give us a call. We do not want our members to go into delinquency or default on a loan. If things are getting tough, reach out to us as soon as possible so we can go over your options,” advises Wilson.
How to Request a Skip-A-Payment from Centris
Applying for Centris’s Skip-A-Payment is fast and straightforward, and our member service representatives can help you through the process.
Eligibility Requirements
- Have a qualifying loan with Centris
- Auto, personal, motorcycle, boat, and RV loans qualify
- No collateral protection insurance
- Account must be in good standing
- First payment on the loan has been made
- Loan must be current (less than 30 days past due)
- Have no loans with Centris more than 30 days past due
- Have no negative accounts with Centris
- Have not used Skip-A-Payment in the calendar year
How to Request a Skip-A-Payment
Requesting to use Skip-A-Payment is simple! You can visit your nearest Centris Federal Credit Union branch or call us at (402) 334-7000 and ask about enrolling in our Skip-A-Payment program. A $35 processing fee applies. A Centris member services representative will assist you in processing your request and, if approved, guide you through completing the necessary paperwork electronically. Once you sign the form, the process typically takes 24 hours, and you’ll receive confirmation once your Skip-A-Payment request is processed.
What to Expect After Skipping a Payment
“While our Skip-A-Payment program doesn’t eliminate the loan payment, it’s a great way to relieve some short-term financial stress,” says Wilson. Here’s what you can expect after deferring your loan payment.
How It Affects Your Loan Terms
Interest still accrues on the principal balance of the loan during the skipped month. This means that when you make your next scheduled payment, a greater portion of that payment may go towards interest than usual. Additionally, since you’ve essentially extended the loan term by one month, this may impact your loan payoff timeline. Using multiple skip payments over the years could extend this even longer. “A deferred loan payment can have some effect on your overall loan,” explains Wilson. “It’s a small trade-off you’ll have to consider when thinking about enrolling.”
Will Skipping a Payment Affect My Credit Score?
Using Skip-A-Pay does not impact your credit score, assuming the loan remains current. “Skip-A-Payment itself does not impact your credit score, but if you were to miss payments after using Skip-A-Payment, you may fall into delinquency, which does impact your credit score,” confirms Wilson.
Is Skip-A-Payment Right for You?
Whether you’re dealing with unexpected expenses or are proactively planning for those higher-spend months, Skip-A-Payment is one option that could help alleviate short-term financial stress.
Before using Skip-A-Payment, Wilson encourages you to “assess your financial situation and determine whether Skip-A-Payment will be a short-term tool for you, or if you’re looking for a longer-term solution. And if you need help deciding what is right for you or are struggling with loan payments, please reach out to us as soon as possible!”
“We want our members to be financially successful, and we’re here to walk through the options that are available,” adds Wilson.
To learn more about Centris Skip-A-Payment or to enroll today, visit a branch or call us at (402) 334-7000 to connect with a Centris member services representative.
Federally Insured by NCUA.
Certain payments are not eligible for this program, including first real estate mortgage loans, commercial loans, home equity lines of credit, home equity fixed-term loans, lines of credit, and indirect loans approved with lenders’ protection. If these restrictions apply to you, please contact a member services representative for alternative options to Skip-A-Payment.
To qualify for this offer, your account must be in good current standing. You must have had a payment posted in the last 60 days that advanced the payment due date. One skip payment per loan is allowed per calendar year. The account may not have Collateral Protection Insurance enforced. The processing fee of $35 applies to all skip payments. Fee subject to change. You must specify at the time of the application the account from which the fee will be withdrawn. Please contact a member services representative to arrange payment. Programs, rates, terms, and conditions are subject to change without notice. Inquire at Centris for complete terms and conditions at (800) 334-2328. Under this agreement, you agree to defer one monthly payment under Skip-A-Payment. Understand that the interest (finance charge) will continue to accrue on the principal balance during the skip period, which may result in additional payments, and payment will resume the following month and continue until the total amount has been repaid. You authorize Centris to withdraw the $35 fee as arranged with the Centris member services representative.
