Forum: Adults / Money Matters

Money Matters
If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By majeremember has saluted, click to view salute photosPremium member Comments: 5889, member since Sat Sep 29, 2007
On Fri Apr 27, 2012 01:01 AM

Just curious. I've been paying about double to what is due and the result is this month I only owe $0.56 (I just noticed there isn't a cents button). I scheduled a payment of $150. I assume that will mean I'll owe nothing next month. Will they still send me a bill? I looked at the FAQs on the site I use to pay them and I am pretty sure they will, but not 100%. Any first hand experience on this would be cool.

I just want to know because even if I owe nothing I'd still like to make a payment (to stay ahead) and I wont remember without getting a bill. I've been paying between $150 and $250 when I only owe $126 a month. I've been doing this because I live with my parents and only have like two other bills to pay. And also, so that if anything happens in the future and I can't make a payment it will be okay.

6 Replies to If I get ahead on paying a loan off will they send me a bill saying I own nothing?

re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By kandykanePremium member Comments: 16415, member since Mon May 01, 2006
On Fri Apr 27, 2012 03:37 AM
Edited by kandykane (157761) on 2012-04-27 03:37:52
You should keep getting a bill. But sometimes if I pay ahead on certain bills, it comes off the principal and doesn't actually put me 'ahead' in my payments, like your's. But sometimes it does. Look for a phone number on the statement and make a call.

kk~
re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By Louisemember has saluted, click to view salute photosPremium member Comments: 17315, member since Thu Jun 06, 2002
On Fri Apr 27, 2012 03:52 AM
I would also check that they don't enforce a penalty for early repayment. A lot of loan companies do over here since they depend on the interest for income, and if you pay it off really quickly you don't accrue as much interest - so they lose money.
re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By AlwaysOnStagePremium member Comments: 7417, member since Sun Apr 18, 2004
On Fri Apr 27, 2012 07:11 AM
My fiance has a loan he's paying off quickly, and each new bill it says "Next payment due:" and the date of the next payment doe gets farther and farther away (I think he's a year ahead right now).

No harm in calling and asking the company, I would think.
re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By majeremember has saluted, click to view salute photosPremium member Comments: 5889, member since Sat Sep 29, 2007
On Fri Apr 27, 2012 09:53 AM
Louise wrote:

I would also check that they don't enforce a penalty for early repayment. A lot of loan companies do over here since they depend on the interest for income, and if you pay it off really quickly you don't accrue as much interest - so they lose money.


I hadn't even thought of that. I just looked it up and there is no penalty. So, yay!
re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By Gioiamember has saluted, click to view salute photosPremium member Comments: 3024, member since Sun Jun 20, 2004
On Fri Apr 27, 2012 12:12 PM
It really depends, you probably need to contact whoever gave you the loan to find out. Like KK said, sometimes the extra money just goes towards the principle. From what you have said though, it sounds like you have either already paid enough down on that loan, or it is a different type of loan and so you are getting ahead in payments. Either way, they will still send you something every month, even if it says you owe $0.00
re: If I get ahead on paying a loan off will they send me a bill saying I own nothing?
By SarahdncrPremium member Comments: 635, member since Wed Jul 29, 2009
On Sat Apr 28, 2012 05:48 AM
Call your leander and ask to speak with a customer service rep. If this is not a credit card type loan, (e.g.: a personal note, car loan, student loan, ect.) then you should (and you should ask for one if one you do not get one sent to you automatically by your lender) get a copy of the note stamped by the leader "PAID IN FULL" and dated. Also you may get a loan pay off letter by the bank.

If your loan was for a car loan(assumin you are in the US, sorry I no nothing how things are done in Europe, Canada, AUS, etc.) your lender will have filled out the lean release box signing off/discharging the loan, and then will mail you your vehicles title. However, again, be a nudge and still ask your lender for a seperatle loan payoff letter on their letterhead. Depending on your state of residence state DMV's may or may not require this and I was one who found out the hard way once that I needed this document so I could get my car re-titled with a clear title.

You also need to make arrangements to stop making automatic payments, or they could continue to be taken by your lender. Usually the lender (assuming they are reputable) will figure that one eventually and send you back any over payment.

Congratulations on paying off a note, and ahead of time even!! That is a great way to build up good persoanl credit and a good credit score. Good on you.

ReplySendWatch