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Understanding Payment Types: Scheduled Payments, Extra Payments, and Principal Adjustment

Learn the difference between Scheduled Payments, Extra Payments, and Principal Adjustments, and how each affects your loan balance.

Making manual entries or selecting payments types affect the way your payment is applied to the loan.

Payment Types & How They're Applied:  

  • Scheduled Payment advances the due date, collects all outstanding fees, collects interest, and applies the balance to principal.

  • Extra Payment is treated like a "scheduled payment," in that it collects all outstanding fees, then interest, and then applies the balance to principal.

 

An Extra Payment does not advance the due date.

  • Principal Payment / Adjustment applies 100% of the payment to the principal balance and the loan continues to accrue interest on the reduced principal and fees on the contract.