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September 9, 2021
One Auto Loan Hack That Saves You Money
One simple change to the way you pay can cut hundreds (or more) off your auto loan. We’ve got an auto loan hack that saves you money.
If you’re like most people with auto loans, you probably send in one loan payment per month. There’s nothing wrong with that, and it’s what you planned to do when you signed on the dotted line. But, what if we told you that by splitting your payment into two and paying semi-monthly, you could save money over the life of your loan?
How does splitting my payment save me money?
Splitting the payment in half and paying twice in the month (semi-monthly) saves money. Why? On an auto loan, interest compounds daily. By paying half your payment early, you actually cut down the principal faster, thereby reducing the corresponding compounding interest you’ll pay over the life of the loan. Plus, any extra amount you kick in toward your loan beyond what you owe for the month, even if that’s only $25 or $50, will save you on interest over time and trim down your timeline to paying off the loan completely.
What’s the catch?
If we’ve made this sound too good to be true, we promise it’s not. There are a couple important caveats to be aware of, depending on your lender. If you have your loan with us, you won’t have to worry about these things, but here’s our advice for navigating this auto loan hack with other lenders:
- Watch out for prepayment penalties. Some lenders charge fees when you pay off your loan early. We don’t, but if your lender does, you can do the math first to determine if the money you’ll save on interest over time will be worth any fee you might incur for paying early.
- If you make an extra payment, make sure it is applied toward the principal. At Grow, we automatically apply any amount that’s paid beyond the amount owed for the current month to the principal, which helps cut your loan down faster. Some lenders may hold the extra payment as a prepayment for a future month. If that’s the case, make sure to let your lender know that you want the extra payment to be applied to the principal while retaining your next scheduled payment. Remember to check your monthly statements to be sure the payments get applied correctly.
Stuck with another lender that doesn’t want you to get out of debt? Learn more about refinancing your auto loan with us.
Subject to credit approval.
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How to Find Your Routing & Account Numbers
When you make a payment online, by phone or on a mobile device, you may be asked for our routing number and your checking account number. Credit unions and banks use these numbers to identify accounts and make sure money gets where it’s supposed to be. You’ll also need to provide your routing and checking account numbers for:
- Direct deposits
- Electronic checks
- Military allotments
- Wire transfers
Where to Find Your Routing & Checking Account Numbers
Your personal checks include both our routing number and your account number, as shown on the Grow check example below.
Don’t have a Grow check? No worries.
Visit any Grow store and ask for a Direct Deposit Form. It lists both your routing number and checking account number.
Making a Loan Payment
When it comes to making payments, we try to make it as painless as possible to pay your loan every month. We have several different ways to pay, including convenient online options.
Pay Online
You have two ways to pay online by transferring funds from another bank or credit union.
- Grow Online Banking (Preferred payment method for any loan)
This is the simplest way to pay your loan. You can make one-time payments or set up automatic recurring payments in Grow Online Banking. Once you log in, select “Transfer/Payments” from the menu. If you’re not enrolled in Grow Online Banking yet, you can set up your account in just a few minutes.
Log In
- Debit Card or ACH (Available for auto, personal loans and HELOCs)
Note: ACH and debit card payments are not available for credit cards or most mortgages, except HELOCs.
We accept ACH payments with no additional fees or Mastercard® and Visa® debit cards with a convenience fee of $4.95. To get started with an online ACH or debit card payment, select Pay Now below.
Pay Now
Pay by Mail
You can also pay any Grow loan by check through the mail. Please remember to include your account number and Grow loan number on the check. (For credit card payments, please do not write your 16-digit credit card number on the check, which can cause a delay in processing the payment.)
Address for auto, credit card, personal loan and HELOC payments:
Grow Financial Federal Credit Union
P.O. Box 75466
Chicago, IL 60675-5466Address for personal first or second mortgages and home equity payments:
Grow Financial Federal Credit Union
P.O. Box 11733
Newark, NJ 07101-4733You Are About To Leave GrowFinancial.org
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