My credit union told me to stop paying twice a month, I ignored them for 6 months

I was making double payments on my car loan every payday, figured it was bulletproof until the teller at US Bank pointed out my interest was still compounding daily on the full balance. She showed me that the extra money just sat as a credit and didn't touch principal until the due date. Switched to biweekly payments with a written note to apply overpayment to principal, and my payoff date moved up by 14 months. Has anyone else had lenders just hold your extra cash like that?

1 comments

1 Comment

craig.reese6d ago

Man, that's wild they just sat on your money like that. Did they ever explain why they couldn't just auto-apply it to principal without you having to write a note every single time?