The name itself, i.e. credit holidays, sounds very encouraging. However, let us not suggest it too much, because it is an option that we use when we have financial problems. As a rule, we decide when we want to apply to the bank for credit holidays, but it is worth it to be reasonable.
For whom credit holidays are recommended
When, for example, we are planning a larger shopping trip or going on a foreign holiday, and just because we have more cash for our pleasures, we want to take advantage of credit holidays, in our opinion it is not worth it. Financial problems caused by random events have the fact that they happen unexpectedly.
Credit holidays are a very helpful creation, however, it is not available on our every call. If we have already used credit holidays only because of our sees, and now we are struggling with financial problems due to sudden job loss, the bank may not grant us another credit holidays.
Credit holidays – what is it?
What exactly are credit holidays? It is possible to resurrect one or several installments on time. It all depends on the bank where we have the loan. When applying for a loan, it is worth finding out before signing the contract whether the bank provides for the possibility of taking loan holidays and on what terms it grants them.
The bank has no such obligation. If there is no such product in our offer or if we do not meet the conditions, it may refuse us. How long are credit holidays? It also depends on the bank. However, if the bank grants credit holidays, it can be from one month to a maximum of twelve months.
How to apply for a credit vacation
To apply for a credit vacation, you must apply to the bank. This is a separate agreement. As we said above, although we have a loan, the bank is not obliged to grant us credit holidays. What’s more, it may not have such a product on offer at all. Therefore, we should be interested in this already when looking for the best loan. We usually apply for credit holidays after a certain period of time (depending on the bank).
When we pay back on time and in the correct amount of the loan installment for 12 months, we can apply for a credit vacation. Therefore, those who have a regular and timely payment of their liabilities and who inform their bank about their financial problems in advance rather than in response to a letter from the bank asking for clarification of late repayment have a chance for them.