Car loan and Credit report

[Logan]

I have a new car loan through Chase that is about a month old but hasn't shown up on my Credit Report. I assume they're waiting for the first statement after the due date to report.

Anyone have any experience with this?

Also, I made my first payment for $1000 but the minimum payment is $352. Since I made a large payment my next payment isn't due until 3/05 instead of 2/05. I found that interesting.

Logan

[krielly]

Regarding the delayed due date of your next payment, it sounds as though they applied your overpayment to your next monthly due payments.

In the future with any overpayment, you should request that the excess be applied to principal ONLY. Not sure if you can have that reversed at this point, but i would certainly try........

[Logan]

It was applied to principal. The total balance was reduced by about $920. I'm sure they adjust the due date because they figure someone who overpays is a good risk and why not extend the due date to get more interest out of them?

Outstanding principal balance $21,272.07 See payoff quote

Amount financed $22,190.00

APR 4.50%

Original term (months) 72

Contract date 11/21/2009

Maturity date 12/05/2015

Interest paid YTD $82.07 See interest paid on this loan

Total interest paid $82.07


Logan

[StartingOver08]

I don't have direct experience with the Chase auto loan reporting, but I do notice that the balances reported throughout my auto loans with my cu report on a lag time of about 60 days. So the first report takes approx 60 days and although the tradeline reports each month, the information is about 60 days old. I paid off the loan in Nov and don't expect the zero balance to show until Jan.

[Logan]

I don't have direct experience with the Chase auto loan reporting, but I do notice that the balances reported throughout my auto loans with my cu report on a lag time of about 60 days. So the first report takes approx 60 days and although the tradeline reports each month, the information is about 60 days old. I paid off the loan in Nov and don't expect the zero balance to show until Jan.

Thanks,

My lease for my rental is up in September and I'd like to buy a home soon after and hoping this Auto Loan gets me solidly back in the 700's. I can get a loan with my current scenario but a higher FICO may open up some more doors.

Logan

[Logan]

Regarding the delayed due date of your next payment, it sounds as though they applied your overpayment to your next monthly due payments.

In the future with any overpayment, you should request that the excess be applied to principal ONLY. Not sure if you can have that reversed at this point, but i would certainly try........

kreilly,

You were right!!! Even though my balance has lowered by $900 they still charge you interest on that money which makes no sense to me since the balance is lower. In any case they are going to change how the payment was applied.

What makes me mad about all this is Chase makes it difficult to pay above principal. The only way to pay towards principal online is to pay a $10 charge otherwise you have to mail it in. I haven't used the mail to pay bill in over 10 years.

Logan

[krielly]

Glad I could help. In that case, definitely mail it. Don't give them an extra $10/month for even one month!

Make sure you attach a note each month instructing them exactly how to apply the excess payment! And watch them closely!

K

[Logan]

Trust me, I won't be paying the 10 bucks. I plan on having this loan paid off in 12 to 18 months so Chase will be getting a check every month.

This car is for my wife so the sooner I get it paid off the sooner I get to sell our Nissan Versa and I can buy a Audi A3 TDI .

Logan

[Logan]

Regarding the delayed due date of your next payment, it sounds as though they applied your overpayment to your next monthly due payments.

In the future with any overpayment, you should request that the excess be applied to principal ONLY. Not sure if you can have that reversed at this point, but i would certainly try........

Kreilly,

I just received a letter from Subaru stating that my account is a simple interest account and any payment over what's due will be applied to principal.

This is what I thought. The person I spoke with on the phone with Subaru was a moron and did not explain it this way which prompted me to ask to change how the payment was applied.

Can you tell me why I wouldn't want to just send in 1K a month without telling them to apply it to principal only?

Thanks,

Logan

[krielly]

Guess I'm just a Murphy's Law kind of person (if anything CAN go wrong it will....)

Personally, I would include a note to that effect with every payment I sent, but that's just me, lol!

K

[aces67]

Guess I'm just a Murphy's Law kind of person (if anything CAN go wrong it will....)

Personally, I would include a note to that effect with every payment I sent, but that's just me, lol!

K

ITA. With the majority of loans they don't automatically apply the extra to principal unless you tell them to. They usually just apply it to your next note which changes your due date instead.

I'd also send in a check with a note for principal only.

[Logan]

I called Chase again and had a lengthy discussion with a very helpful person. She said any payments made over the amount owed are applied to principal. If I do not check the box it is also applied to the next payment as well.

I'm planning on paying 1K to 2K a month. If I use my bill pay service Chase will not consider the overage a payment towards principal but towards future amounts owed. Although as I said these payments reduce principal and are applied towards future payments so the loan amount will be reduced and the next due date will be further down the road.

The problem with paying without checking the box is at some point an entire payment will be applied towards interest which may be a little surprising and confusing. In any case interest is accrued on a day to day basis so however I choose to apply the payments in the end the amount of interest paid will be about the same.

Logan

[oldhack]

For ease of understanding, I always just wrote a second check marked "Principal Only" (or with a like note attached), and included it with the standard monthly payment. That worked fine.

[Logan]

For ease of understanding, I always just wrote a second check marked "Principal Only" (or with a like note attached), and included it with the standard monthly payment. That worked fine.

I agree with you but I decided I like the due date for the next payment pushed to a later date. If something ever happens and I need the money I can delay my next payment for a few months.

Logan