I have a HELOC with a $100K CL, and I think it processes payments strangely.
It's setup for interest only as the minimum payment. That's not the strange part (rather normal, actually). The first payment I made on March 7 was for $77,527.95 and the second payment was for $100 on March 8. I'm glad I made that extra $100 payment, because I noticed the balance didn't move after I made the $100 payment. I then noticed that the full $77,527.95 went to principal. I would have expected that it would have taken interest first out of the $77K payment. It still shows that I owe $68.21 on March 15.
The reason this is bothersome is that theoretically, I could go late on this payment over $68, when I just made payments of over $77K. If I weren't so anal about hawking my accounts, that certainly could have been the case.
Does anyone else find that weird? Is this how your HELOC processes your payments as well?
I was in the banking field for a number of years and never saw a product that processed payments that way.
Starting Score: 469
Thanks for replying. I did and the answer I received is weird.
So, I made the payments on March 7th. That evening, the statement closed and posted the interest due for the previous period. That's why it didn't take any interest on those payments. The weird part is that the interest payment is due eight days after the statement closes. I've never run into this before, because I have so much activity in the HELOC in and out, and apparently, this is the first time I made a payment on the statement closing date.