Let them put it where they want. Move payments up... Did the same thing with Santander. They compound interest daily, so it doesn't matter.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Santander does the following - according to them
They apply all paymetns to any fees (late fees or what not) first. Then any interest that has compounded (which it does daily) and then principle.
I've gotten quite a few different opinions on things from them and it really mattered who I talked to each time. Same question got 3 different answers none of which ended up being the RIGHT answer.
Do you have your promisary note or your copy of the contract. I'd get that out and read it over and over again. It has to say in there somewhere how payments are applied.
In the end if they apply any over payments to future payments all it means is that when they calcuate interest its calculated on the amount for that month at that time, not what the actual principle is - they do this to guarentee them to make $x in interest no matter HOW quickly (or long) you pay off the loan you could pay it off in 1 day, but in the end you still paid the same amount of interest.
They legally can not hold the title once the loan is paid off doesn't matter WHAT state your in - if they don't have a lein on the vehicle (which they can't once the car is paid off) they can't withold the title.
I had originally brought mine through Citi, then Santander bought all their accounts. I was way ahead on my payments on 2 vehicles but then I had improved my CR enough that I refinanced through my local bank.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Oh they're applying it to the loan, the loan is going down by that amount. They are trying to stretch it out so they get the most interest.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
@Shogun wrote:Oh they're applying it to the loan, the loan is going down by that amount. They are trying to stretch it out so they get the most interest.
Yup.
Technically they are, they are just moving your next due by date further and further away.
A refinance would payoff the entire balance due (plus any interest that accrued since the last payment).
We pay my wife's santander car loan weekly. her next due date is like 5 months away however her balance shows exactly what we owe. Basically if we lost our jobs today and couldn't pay a dime, it would buy us 5 months to come up with the next payment since we technically paid those 5 months already. We pay it weekly so that we end up paying an extra month's payment throughout the year without having to come up with a full months payment plus I work right next to a branch so I do it every friday on my lunch break. (its free and they can never claim they didn't get your check like they did when we would mail them).