@Anonymous wrote:
Annual Percentage Rate: 17.99%
Amount Financed: 14,595.00
Monthly payment: 373.32
I gave my first payment on 8/2/2019 for $373.32. Today I receive an alert from Credit Karma that my loan has increased to 14,904. Is this normal?
Yes.
They reported the state of the loan with about 5-ish weeks of interest applied to it, and not yet showing the first payment applied. Not all that uncommon for initial loan reporting.
More than half of that first payment goes just to paying off that first month+ of interest, and what's left will then bring the loan back under the starting balance.
Depending on when the lender chooses to report (and if they usually report statement balance or current balance), you might see the balance on this loan reported as about $200 higher than you'd expect for most of the rest of the first year, with the difference slowly dropping as more is paid off. (Or if going forward, they choose to report statement balance, then you'll see the numbers you "expect".)
But yes, those numbers make sense. You are just seeing the moment-in-time principal plus interest being reported. Your balance actually increases every day over the course of the month, and then the monthly payment covers that increase from the interest, plus pays down some principal.
EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
