Established Contributor
Takunda1
Posts: 512
Registered: ‎06-08-2007
Re: principle v/s intrest


verian wrote:
every month i pay 50.00 extra on my car note and than get the bill in the mail later to find out that they always applt the money to th intrest instead of the principle can i tell them that i want the money to be allpied tgo the principle what should i do?


 
Trick of the trade. Most financing companies do this. You will find that there is a separate address to send extra payments. If you send it all at once on one check or electronically it is just considered extra payment towards your next months payment. At Capital One, our contract states that if you pay over your monthly without specifying that the extra should go to principle only, we will apply the funds to the next three months payments including interest, then the remainder is applied only to interest.
 
Do this: Pay your monthly bill as you do. Call in the the $50 payment & tell the rep that you want that $5) applied only to principle.  Hope that helps :-)