question about cc payments

[rsriverrat]

i have a question about the installment loan and cc i just got approved for from my local cu.

the lo told me that on my installment loan if i make a 150 dollar payment and my min payment is 50 dollars that my next payment due date will be increased by 2 additional months, that i understand with no issues, after speaking with my mom she tells me this is common for a installment loan ( this is my first ever installment loan that is a loc, my past car loans have never been this way so it was kind of a shocker to me... anyway

the lo also told me that the cc i just got is the same way, my min payment is 25 dollars and if i charge 150, then pay 100 the next payment due date will be 3 months out with no payment due till then.

does this seem right? i asked her numeous times about this and she assured me it was, she even showed me her cc info with them so she could explain it in more detail for me to understand, she also went on to tell me that all of the loans they do are that way except signature loans, and maybe the mortgages ( she wasnt 100% sure about those).

Ratt

[Anonymous]

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@rsriverrat wrote:

i have a question about the installment loan and cc i just got approved for from my local cu.

the lo told me that on my installment loan if i make a 150 dollar payment and my min payment is 50 dollars that my next payment due date will be increased by 2 additional months, that i understand with no issues, after speaking with my mom she tells me this is common for a installment loan ( this is my first ever installment loan that is a loc, my past car loans have never been this way so it was kind of a shocker to me... anyway

the lo also told me that the cc i just got is the same way, my min payment is 25 dollars and if i charge 150, then pay 100 the next payment due date will be 3 months out with no payment due till then.

does this seem right? i asked her numeous times about this and she assured me it was, she even showed me her cc info with them so she could explain it in more detail for me to understand, she also went on to tell me that all of the loans they do are that way except signature loans, and maybe the mortgages ( she wasnt 100% sure about those).

Ratt

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I think my student loans are set up that way - depends on the lender/loan I guess. Others simply take the extra payment off the principal, and you continue to make your scheduled payments. Then you will owe less payments at the end of the cycle, and will have paid less interest as well...

[rsriverrat]

she explained it to me like this, they provide this feature for their members incase they get in a bind they will have a cushion, however if the additional amount is continued to be paid like i just stated then the loan would be paid off sooner, thus eliminatiing the additional interest that would have normally been paid had you made min payments.. sounds like a winner for the members especially in the rough times we are going through right now.... i was just more concerned about the reporting to the cra's, she says they just report it as current and paid as agreed...

Ratt