Reply
Regular Contributor
jason0618
Posts: 126
Registered: ‎07-03-2007
0

Isn't the payoff supposed to go DOWN?

Got an interesting one.  I just bought a used Harley in April.  My plan is to finance it and crazy high rate, and then pay it off after 12-18 months to give me some extra credit.  My payment is only $155.97 a month, because I put a big chunk down, but I'm still at a 22% rate.  

I've had two payments due, both were paid on time and rounded up to the next dollar.  Only $0.03 extra I know, but still.  

Today, I look online for a payoff, and it's a couple of dollars higher than the original loan amount.  I know interest accrues and all that, so I'm not expecting a big drop after only $312 in payments, but surely it shouldn't be higher than the original loan, right?  

I called Harley Financial, and while they have english speaking reps, the guy I talked to really had no clue what he was saying.  Kept telling me it's because I was making smaller payments.  I would pay $40 one week, and $75 another week, etc.  Added up, I made more than the required payment, and always by the due date, so his explanation makes no sense to me.  

Any suggestions here?





Starting Score: 434
Current Score: 616
Goal Score: 700


Take the myFICO Fitness Challenge


NFCU nRewards Visa $0/$1000
Barclaycard Rewards MC $0/$1300
Credit One Bank Visa $2/$300
Jared card $0/$400
Established Contributor
bahbahd
Posts: 731
Registered: ‎08-12-2011
0

Re: Isn't the payoff supposed to go DOWN?

Regular Contributor
jason0618
Posts: 126
Registered: ‎07-03-2007
0

Re: Isn't the payoff supposed to go DOWN?

That could be...  My principle balance isn't shown on the website, only payoff.  I'll have to call and check that out.





Starting Score: 434
Current Score: 616
Goal Score: 700


Take the myFICO Fitness Challenge


NFCU nRewards Visa $0/$1000
Barclaycard Rewards MC $0/$1300
Credit One Bank Visa $2/$300
Jared card $0/$400
Valued Contributor
j_casteel
Posts: 1,907
Registered: ‎06-21-2012
0

Re: Isn't the payoff supposed to go DOWN?

At 22% and only making the min payment you are accruing interest faster than paying the principle down. You'll need to make bigger payments if you want to see the payoff go down b/c right now you're just paying interest until later in the loan term.

| Walmart $5k | Amazon $5k | NFCU $20k | NLOC $15k | Lowes $17k | BoA $17.5k | Freedom $3k | IT $4k | CSP $5k | Marriott $5k | AMEX TE $9k | Alaska $5k |
Starting Scores: EQ:571 EX:??? TU:597
Current Scores: EQ:694 EX:714 TU:711
Goal Scores: 700
across the board

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}