@Anonymous wrote:Breakdown
used car loan : 7000
down payment was :1300
the downpayment just go to the auto dealer
Statement says I owe : $7036
months: 48
monthly payment: 176
rate : 9.09%
my second statement says I still owe
$6939.03
i paid last month for the first payment and
it goes
97.42 went towards principal
78.64 towards interest
I’m guessing the 97.42 is what is being deducted from the $7036 car loan?
and the interest rate is another separate payment I have to keep paying?
78.64 doesn’t seem like 9.09% rate to me...
Also im looking at the credit score and since financing this used car, my fico tu8 dropped -30 points.
I am not very happy but they said as my car loan lowers my credit score will go up.
If I’m only paying just 97 a month towards the principal loan looks like it’ll take 4 years to get my points back!
I would rather just pay the $7000 in one year than be stuck in limbo paying interest.
You are correct that the $97.42 was the amount deducted from the loan (principal).
That amount will go up and the amount of interest per payment will go down as the balance goes down.
If you can afford a larger payment you could reduce the amount of interest paid over the life of the loan, and pay the car off quicker by paying more.
For example, $24 a month could potentially pay off your loan about 5 months sooner.
Doubling your monthly payments would pay the loan off in 22 months and save you about $759 in interest on the loan.
A new loan or credit card will almost always cause a temporary scoring loss, with on time payments and not continuing to add new accounts-- your score should start to regain those lost points in 3-6 months (depending on credit profile).
