Principal applied payments

[Anonymous]

If your set up with online payments through Cap One is it possible to make principal only payments after the scheduled payment has been made?  I understand when paying by check or money order you can somehow identify it as such but wasn't sure how to go about it with online payments.

[sobreezy]

I would call them and inform them of what it is you are tryin to do.  they sometimes have back door numbers

[Anonymous]

car loans are simple interest loans, with daily accrual in interest based on the existing daily amount of your balance. plus the loans themselves are contracted to term with payment being made on xx day of the month. paying your loan early by a few days can lower your final amount paid due to propogated  lower interest accumulation. Paying even a day late although may not get you a service fee, does man that the daily accrual was higher then originally thgought so now you will need to pay more at end of loan to get your car.

Any additional payments/monies paid, will at the time of payment immediately pay off the portion of what that days balance is, so in essence there is no real principal aspect since the interest is compounded daily you are only paying that individual days interest accrual,

[Anonymous]

I had a loan with Cap One and always paid on-line.

With me anyway, paying any amount online over and above your normal payment was just put toward the next months payment, with interest being taken out for whatever the daily accured amount would be on the date you made the payment.

HOWEVER, if you call them and tell them you want to pay an amount to the principle over and above your normal payment, you can, and they will do it over the phone.

As an aside, I just paid my loan off - about 6 months earlier then the contract, and then, for my good stewardship of the loan, I was rewarded with a credit score DROP for 701 to 683.

Gotta love the credit scores. Guess I need to go buy me the 26,000 motorcycle I have been eyeing. Taking on that debt, with an installment account will, I am sure, raise me back up to my former scores.

Think the system is designed to keep you in debt.

But hey - thats just me.