NFCU Principle Only Payments?

[nbarb001]

Good Morning!

Quick question for everyone out there. I recently did a refi on my auto loan from USAA to NFCU. I got a lower rate and i also got a $250 bonus for switching. The $250 was deposited into my account this week and I want to put it towards the loan as principle only payment. I could not find the option online to make that type of payment so I went ahead and called them. The representatvie told me that this is not possbile to do on an auto loan. When I asked why she told me it was impossible because it is simple interest. When I asked her for a better explanation she told me that any payment I make would go towards interest, then principle

I know in the past I have made principle only payments with USAA. Does this make sense to anyone?

Thanks!

[Creditaddict]

If you apply to your loan, they will just show you on future payments that you dont' owe the full payment because you already paid $250 towards that months payment but if you just continue to make the full payments you are in turn applying the extra towards your principle.

[nbarb001]

thanks for the reply. Just wanted to see someone who has had experienced with this. My next monthly payment is 35 dollar haha. I plan on making another payment plus more

[Creditwiser]

I had the same scenario with GM a few years back.  I liked that set up since it gave me the flexibility the following month to pay less or sometimes none at all.  Plus knowing you're payments are obviously on time.