Snap on credit pay off early?

[ihatesnaponcredit]

I had bad credit score, and my dealer says he could help me to get approved from snap on credit, but the interest rate is 27.89%....which my total amount financed is $5500,and the interest is $2632. I decided to accept it.

But last month, I'm no longer working, but luckily, although my credit score is bad, bad but I have savings in my account, so I decided to pay off the credit.

I called snap-on credit, and they told me if I pay off now I will only have to pay $5300 instead of $8132.

So wanted to ask if anyone can confirm that if I pay $5300, then I don't have to pay the rest of the interest?

Thanks.

 

[DodgeMech]

No, if you pay off easily, you just pay the interest you've already made, and the principle

 

[WhiffySpark]

Yeah you don't. Just pay the number they told you. If it's within 90 days no interest

 

[Rook7801]

No idea on how Snap On finances, but most things like that are simple credit or daily interest. Basically they showed you what he accrued interest would be if you paid the monthly payments for the term of the loan. Pay it off early and you don't end up paying all that money.


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[JeepsAreBuilt]

The interest accrues over time. They came up with $2632 interest amount by the length of your loan. Pay off early.. you will only pay whatever interest has been charged so far on the balance. Did you purchase $6500 of stuff and get the $1000 rebate ?

 

[ihatesnaponcredit]

I signed the contract on Nov 3, 2015. Making payments every week, no lates.

Called 2 weeks ago and was told that if I pay off by the time I call, I only have to pay $5300.

I don't mind to pay some nterest, but just wanted to know, if I choose to pay off in 2 days, I don't have to pay $8132, is that correct?

Thanks

 

[ihatesnaponcredit]

The interest accrues over time. They came up with $2632 interest amount by the length of your loan. Pay off early.. you will only pay whatever interest has been charged so far on the balance. Did you purchase $6500 of stuff and get the $1000 rebate ?

No I don't, I used the apprentice discount for 35% off.

 

[Git]

I signed the contract on Nov 3, 2015. Making payments every week, no lates.

Called 2 weeks ago and was told that if I pay off by the time I call, I only have to pay $5300.

I don't mind to pay some nterest, but just wanted to know, if I choose to pay off in 2 days, I don't have to pay $8132, is that correct?

Thanks

Probably the best thing you could do is pick a date several days from now when they would actually get your payment if you mailed them a check, paid in person with cash, etc. Then call them again and ask them for the 'pay off' amount for that date.

 

[WhiffySpark]

I signed the contract on Nov 3, 2015. Making payments every week, no lates.

Called 2 weeks ago and was told that if I pay off by the time I call, I only have to pay $5300.

I don't mind to pay some nterest, but just wanted to know, if I choose to pay off in 2 days, I don't have to pay $8132, is that correct?

Thanks

You're right you just pay the pay off amount. Same as a credit card. They can or at least used to take payment over the phone

 

[ihatesnaponcredit]

I see. That's kind of a good news, I will just notify them through the phone and pay them to my dealer in person.

Thanks for the help!

 

[Skin]

I don't mind to pay some nterest, but just wanted to know, if I choose to pay off in 2 days, I don't have to pay $8132, is that correct?

Thanks

Correct. The 8k total was calculated with interest applied if payments were stretched out to a multi-year period. Paying off early removes much of that accrued interest hence the lower figure. Its not going to make a huge impact but it also looks good from the standpoint of a creditor.

I see. That's kind of a good news, I will just notify them through the phone and pay them to my dealer in person.

Thanks for the help!

Get a receipt. Most dealers aren't scumbags but there have been times when they'd fail to report the payment.

 

[bobcatdan]

You should be able to directly pay off your dealer. I have used SO credit several times and when I was ready to pay the lump sum off. I told my dealer, he has the current pay off in his computer. I pay him and get a receipt saying zero balance.

 

[ihatesnaponcredit]

I see, I will get to my dealer and make sure I will have a reciept. Don't want to deal with that 27.89% interest rate.

 

[GTA Matt]

Your dealer probably will only take payment in form of cash or a check for that amount. I payed ~5k off and just called snap on direct. No big deal. My dealer didn't want to eat the couple hundred to run my debit card.

Btw, your username spells troll...

 

[slotard]

Yeah that's a crazy interest rate and you're much better off paying it sooner if you can. That's a lot worse than typical credit cards. If you weren't making any payments, even with no penalties/late fees, 3 years from now you'd owe more than double what you owe now.

If you can I'd suggest getting a credit card and spending fairly small amounts every month, paying them off in full every month. That's a good way to help your credit. Even if it's a secured card it'll help.

 

[blown94conv]

I would call Snap On credit and pay it off directly. The interest is only if you carried the loan to term.

Interest rate is high, and use that as a learning point. Keep the credit as clean as possible, it will save you thousands over a lifetime. For everything.

 

[ChevyEFI]

Most states have laws preventing full-term interest being applied to a paid-early loan.

That's great you have funds to pay it off and g/l with the job search.