Skip A Payment in January

[IcyCool7227]

The other day when I was browsing through traditional banks and credit unions credit options and deposit rates I saw a lot offer Skip A Pay payment in January. Unfortunately, I am still strictly gardening for a while yet but doesn't the major banks ever offer that? Like Amex, Cap 1, Chase, Citi, Discover, etc.? It would be wonderful if they did with all the cyber shopping purchases I've made. If they don't offer that then why don't they?

[FicoMike0]

I've seen that too, mostly credit unions I think.

Seems like a gimmick, to me. I can't imagine the payment just goes away. Look in the fine print, you're going to pay it, with interest, in the end.

[GZG]

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@IcyCool7227 wrote:

The other day when I was browsing through traditional banks and credit unions credit options and deposit rates I saw a lot offer Skip A Pay payment in January. Unfortunately, I am still strictly gardening for a while yet but doesn't the major banks ever offer that? Like Amex, Cap 1, Chase, Citi, Discover, etc.? It would be wonderful if they did with all the cyber shopping purchases I've made. If they don't offer that then why don't they?

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I'm not trying to get a 'loan modification' negative added to my credit report, with any luck the denote that you used the 'skip a month' on the credit report and basically make you toxic to lend to. amex specifically cites as a pretty hardcore denial reason that's tough to overcome. 

credit unions typically have decent personal loans which would make for much better options for this rather than a skip payment functionality, IMO

[CreditCuriosity]

Its a gimmick IMO.. You don't have to make a payment but interest is still certainly still accruing unless notated otherwise.  So might help people strapped for cash or want to pay the piper at a later time

[LiamDavis]

If your purchases from the month got forgiven, then I could really get behind this!

[JamesS84]

Enough people are paying interest at high enough rates already, so they don’t need promotions like this. They’re raking it in already.

[ptatohed]

I don't think interest stops with this skip a payment offer.  I think they just remove the minimum payment due that month.  But since the minimum payment is so small anyway, any one can essentially 'skip a payment' any time by just paying the $39 minimum payment.

But don't!        

[dfwxjer]

The only proper way to "skip a payment" is to not make the purchases you can't PIF in the first place. Skipping payments is a debt trap that encourages reckless behavior. 

[MrsCHX]

PenFed used to have this pop up for my auto loan all the time. But 1) the payment just gets pushed to the end of the loan with interest accuring on it for the duration 2) there was fiiiiiine print that said, by skipping a payment, you're ineligible for other credit products for 6 months or more and open lines of credit may be closed. 

I certainly wouldn't entertain it!