I wasn't trying to say it was the best overall option, just the best if you are working to increase your credit score.
#Where to see finance gm financial full#
I make sure I am a full payment ahead and have autopay turned on with my current monthly payment and I set aside a bit every month to throw at it at the end of the year or I hit a certain amount minimizing my interest paid within my budget. True, but that is why I also make payments super early because how GMFinancial does interest( seen here). All three are pluses for your credit report for all three reporting agencies. Note this is the method I would use as it has the best chance of increasing your credit score, one by having an account in good standing, second by number of on time payments(even if the payments are listed as 0$ due they are reported monthly by GM Financial( I have a loan with them and pay a few months ahead myself), and third average age of accounts. You can repeat this till year 4 and just pay off the loan when you feel like. If you do it in december before your payment is scheduled for January they should rescale your monthly payment and you could then save the 100$ and the new remaining amount in your savings account. If you don't want to call them every month I would go back to paying the minimum payment and putting that extra 100$ in a saving account and make a yearly call and put the entire balance to the principal. They apply this clause to every interaction. One of the clauses mentions that there is no fee for paying off your plan early, but that any payments above the minimum will be payed against the next payment(s) unless expressed by the client directly. The GM Financial plans use this method to try to insure that they are gonna get every penny they can out of the life time of your loan. I remember the hassle involved in getting my student loan servicer to apply excess payments to the highest interest account (they wanted to pro-rate it across all balances by default 😩). I'm pretty sure that's why it's the default way to process your payments.Įdit to add: if they really are holding the excess without crediting you until the next payment (and not just also reducing what you owe next month), the memo line on the check wouldn't cut it - but a formal, written letter of instruction should. The second case should wind up with the same total dollars paid but more flexibility in payment flow. Because I'm now "ahead" on the loan, I can stop paying it (or reduce payments) for a few months too. So I'm paying the same amount in interest in either scenario (if I keep making my payments on the due dates), but I have some slack. The amount of interest due at the next payment is based on daily rate * balance * days. I would notice my principal balance decrease the date of payment, and also my minimum payment for next month would decrease (or my due date would be extended). What is next month's payment? It's mostly principal. If they explicitly reduce the principal balance, that's great. That doesn't seem right to me - I understand if we can't use the website to pay extra, but why can't we mail in a check and write what we want done on the memo line or on the notes section on the slip? Is there anything we can do here to avoid giving our bank account info over the phone and having to call in every month for the next four years?
We asked a third person if we can mail in a check and write "apply extra to principal" in the memo line, and were told they wouldn't honor it unless it was phoned in. We both don't want to go through that process every damn month because it takes 15+ minutes to get someone, and their automated system doesn't work.
#Where to see finance gm financial how to#
She called them and asked how to change the online payment system to apply extra to the principal and she was told by two different agents that she has to call in and make a payment over the phone if she wants to do that. Turns out GM Financial has been taking the overpayment and applying it to the next month's balance rather than the principal. She's been paying them anyway, but just now brought it to my attention. She informed me a few days ago that the past few months her bills say she owes $0.
Everything is going great, and we're paying an extra $100/mo on the account every month. My fiance bought a car a few months ago and fianced through GM Financial. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future.
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