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Best way to apply car loan payments when account is currently paid ahead

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Best way to apply car loan payments when account is currently paid ahead

As the title says, I have a quick question about the best way to apply payments when paying ahead. I'm trying to get my car loan paid off as soon as I can, so over this last year, I've been making biweekly payments, overpaying on each payment, and then also making principle only payments when I have extra money. My last payment was on monday, so now my account shows my next payment isn't due until July 2019. I'm assuming if I keep making payments as is, it will just keep pushing my due date. Does it make more sense and/or save more in interest to change the payments between now and July to principle only payments, and then resume "regular" payments on the stated due date, or just carry-on as is and not worry about it? 

 

I don't want to over complicate my payments, but I want to make sure I maximize the benefits of the biweekly and principle only payments.

 

Thanks in advance for any advice!

Scores (As of 2/6/18): EQ-676 TU-667 EX-671
Ch7 Filed: 7/27/15  Discharged: 11/9/15   Last approval 2/6/18
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Super Contributor

Re: Best way to apply car loan payments when account is currently paid ahead

I like to pay ahead at least 1 month in case I ever need to skip, otherwise all extra money goes to principle








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Message 2 of 4
Valued Contributor

Re: Best way to apply car loan payments when account is currently paid ahead


@amberlina202 wrote:

As the title says, I have a quick question about the best way to apply payments when paying ahead. I'm trying to get my car loan paid off as soon as I can, so over this last year, I've been making biweekly payments, overpaying on each payment, and then also making principle only payments when I have extra money. My last payment was on monday, so now my account shows my next payment isn't due until July 2019. I'm assuming if I keep making payments as is, it will just keep pushing my due date. Does it make more sense and/or save more in interest to change the payments between now and July to principle only payments, and then resume "regular" payments on the stated due date, or just carry-on as is and not worry about it? 

 

I don't want to over complicate my payments, but I want to make sure I maximize the benefits of the biweekly and principle only payments.

 

Thanks in advance for any advice!


 

Should not matter if a simple interest loan.

Interest is based on balance not a preset amount.

The faster you pay and the more you pay, the less interest you will pay.

I like pushing payments out in case of cash flow emergency.

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Message 3 of 4
New Contributor

Re: Best way to apply car loan payments when account is currently paid ahead

Thanks @Brian_Earl_Spilner & @Shooting-For-800 . Yes, it's just a simple interest loan, no prepayment penalty. I think I'll keep an eye and make principle only payments until i'm a month out then resume the regular payments. That way I have the cushion as you suggested but I keep making payments to get the principle down.
Scores (As of 2/6/18): EQ-676 TU-667 EX-671
Ch7 Filed: 7/27/15  Discharged: 11/9/15   Last approval 2/6/18
Committed to the garden until 10/09/2020!

NFCU GoRewards - 2/18 - $25,000 | Capital One QS - 10/15 - $19,500 | NFCU Cash Rewards - 7/16 - $16,100 | CareCredit- 11/16 - $12,000 | Sams Club - 6/16 - $8,500 | PayPal Credit - 5/13 - $5,663 | Discover It - 10/16 - $4,900 | PayPal CashBack MC - 12/17 - $4,000 | Amazon - 6/2016 - $6,000 | Lane Bryant - 5/02 - $4,000 | VS - 3/04 - $4,500 | NY&CO - 3/04 - $3,500 | Walmart - 6/16 - $6,000 | Torrid - 10/11 - $3,000 | Kohl's - 12/15 - $3,000 |(SD)Overstock - 5/16 - $8,700 | (SD)Fullbeauty - 12/15 - $3,650 | (SD)Express - 12/15 - $4,200 | Target - 10/16 - $1,800 | (SD)Ulta - 10/16 - $2,900
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