With respect, that's one of the greatest pieces of misinformation that's continuously peddled by Credit Unions.Personally, i’d choose a Credit Union loan, as it is unique in offering flexibility on repayments. You can pay it off faster if you wish, and they tend to be flexible if you need an extension, or reduce payments. You will not get this with any banks
With respect, that's one of the greatest pieces of misinformation that's continuously peddled by Credit Unions.
You can repay a personal loan with any bank as early as you want, either by overpayment or repaying in full.
Yes. Your rights to repay early are protected in legislation.Even if it's fixed term ?
I don't understand the question? Why would the rate be lower?Would a bank have a reducing interest rate on the lower balance of loan also ?
But is there any truth in the claim that CUs are more flexible when it comes to re-scheduling payments?You can repay a personal loan with any bank as early as you want, either by overpayment or repaying in full.
In theory, they shouldn't be, if they are properly adhering to Section 35 of the Credit Union Act.But is there any truth in the claim that CUs are more flexible when it comes to re-scheduling payments?
Yes. Your rights to repay early are protected in legislation.
A fee can only be applied if it's both a fixed interest rate loan, and you repay more than 10,000 early in a 12 month period.
I don't understand the question? Why would the rate be lower?
Yes, the interest charged would be lower. (You confused me asking about the rate).The interest would be lower on the lower balance owed in theory
Yes, the interest charged would be lower. (You confused me asking about the rate).
Yes, you can repay a bank loan early, but what you cannot do with a bank loan, but you can do with a credit union loan, is make additional payments, whenever you want, and that is the flexibility I am referring to. If you have extra cashflow, pay off more, and if you have issues repaying, you will find them flexible.With respect, that's one of the greatest pieces of misinformation that's continuously peddled by Credit Unions.
You can repay a personal loan with any bank as early as you want, either by overpayment or repaying in full.
Show me a bank that won't let you overpay a loan!but what you cannot do with a bank loan, but you can do with a credit union loan, is make additional payments
Not sure you are correct there. I just cleared a BOI loan, made regular additional payments without issue and cleared the loan in 3 years rather than the contractual 5. Banks will not refuse money. My additional payments were much ad-hoc and depended on surplus cash at the end of each monthNot an a regular "ad hoc" basis. With a CU loan, you can do this at your whim, not the banks, no paperwork. Just walk in and overpay.
This thread is suggestions on car loan options, and there are many, and important to point out the various flexibilities, and pros & cons, of all various options.
Really???Not an a regular "ad hoc" basis.
Not sure you are correct there. I just cleared a BOI loan, made regular additional payments without issue and cleared the loan in 3 years rather than the contractual 5. Banks will not refuse money. My additional payments were much ad-hoc and depended on surplus cash at the end of each month
Payments varied from month to month depending on surplus cash available. Interest was applied quarterly throughout the term of the loan on outstanding balance. As the balance decreased so did the interest charged. Don’t have exact figures to hand just now, but can dig them out.Where the additional payments the same amount each month ? Did you pay less interest than set out in the loan agreement/contract ?