I sent an email to my bank b/c I wanted to pay off my car faster. So I asked if I was able to send it seperate checks to pay off the principal faster. Here is what they said......

In response to your inquiry, We allow customers to make up to 3 regular monthly payments at a time (or 2 full payments ahead). In general, any other irregular or overpayments are applied directly to the principal balance of the loan. You are more than welcome to add additional funds to your regular monthly payment if you would like to try and pay down the principal. Keep in mind that these overages may be applied to your next regular monthly payment if it appears that applying the overage to principal will cause your account to become delinquent.

I don't get what they mean
"if it appears that applying the overage to principal will cause your account to become delinquent."

Can someone educate me? Thanks!

 

the answer to your question is yes. you don't have to pay JUST the minimum payment...add as much as you want.

 

i read that over like 5 times...i still don't get it either.

 

i think she's referring to that odd line in red at the end...i don't see how paying down the principal would result in your account becoming delinquent under any circumstances?

 

like RB said.. in this case anymore you pay over for the month will count as following month payments.. so if u were gonna be in europe for say 3 months.. pay 3xmonthly payment plus current month payment so you wont have any delinquints while yer gone

 

:werd:

I don't see why they don't just word iot simply in laymans terms but after all the lawyers are paid I guess thats what it amounts to.

 

:lmao:

 

in addition the part in red says if you pay say $300 more than the regular payment but they have not received the next payment and there is only1 day left. they will use the $300 to cover your next payment.

it's a win situation for them since, that way your principle will get paid off slower.

 

So as long as I am constantly current, any overages will be automatically put towards the principal. Am I right in saying that?
Do you guys/ girls do that? If you do, do you send in a seperate check that says "principal only?" or do you just send in one big check? Thanks for your quick help!

 

ohhhhh i get it now. yea, that's actually really nice and saves your ass if need be. i'm almost surprised the bank does something like that, as they usually have no problem leveling late fees and other fun excuses to take your money.