Manufacture additional payments In relation to your vehivle loan can save you a denoting proportions of process because you cut the magnitude of finance charges you stipend. Additional payments lift to reduce your loan name. When you satisfy ready to create additional payments, you Testament demand to supersede the licence procedure to assure your expenditure has been received and processed. When you carry paid your motorcar loan in unabridged, your car Testament retain a at liberty and unrestrained term.
Instructions
1. Phone the customer work branch of the bank that issued you the automobile loan and bias the domicile to dispatch your payments. Your monthly statement Testament posses this superscription further. Photocopy your statement or draw up down the value direction and your story digit. When you influence ready to letter additional payments, you Testament acquire the dope you longing at your fingertips. Additional payments can be sent well-adjusted or days apart.
2. Determine the method for making your payment. Some companies allow you to make payments over the phone. Payments can also be mailed or completed online. If your bank offers online bill paying, this can be utilized too.
3. Decide how much money you are going to pay. You can send any amount above your standard monthly payment. If your payments are $500, and you send in $700, the additional money will be applied towards your principal balance.5. Wait five or six days and call the bank for confirmation that your payment has been posted to your account. Sometimes payments are posted to the wrong account in error. Even if your check has cleared, the bank may not have applied it to your account.
Write a check and make sure it contains all necessary information and is signed. Write your loan account number on the voucher portion of your check. This will ensure that your payments are posted without any delay. If you make two standard payments your loan due date will advance two months. If your current due date is March 1 before the payments are made, your due date will be May 1 after the payments are applied to your account. Interest is computed based on your outstanding balance. Your interest charge per month will continue to decrease as your balance decreases. Send your payment to the address provided by the customer service department.
Finance charges are always paid first, then remainder is applied towards principal. You can also send in $1,000, which is two standard payments.4. If you let the bank know an error has occurred, it should be able to fix it and apply the payment to your account.
6. Get an auto loan calculator. An auto loan calculator is a useful tool used by auto dealers and financing companies. You can calculate your new payoff date after extra payments have been made. This tool also helps you calculate how much you save in finance charges when you make an extra payment.
7. Make a principal-only payment. Send in a payment and include a note requesting that the payment be applied towards the principal balance only. If you send in two payments and you request that one of the payments go towards your principal balance only, your due date will not be advanced outwards. If you have a payment due Dec. 1, you mail a payment on Dec. 2 and the lender receives it on Dec. 5, your next payment will be due Jan. 1. If you mail another payment on Dec. 10 and you request that it be applied towards the principal balance only, your next payment will still be due Jan. 1. Principal-only payments will reduce your balance but they don't push or advance your contractual due date forward.
