Car Loan paid off early but interest to be added?

veryangryman

Hey, Just got a slight windfall and decided to pay off soem debt.

Thing is i am due to be charged interest on the principle later this month. Will this still be charged given the fact that the balance is now zero?

And yes i know this is a borderline stupid question as i am pretty sure they charge the interest daily regardless.

Thanks anyway

homer911

veryangryman wrote: »

Hey, Just got a slight windfall and decided to pay off soem debt.

Thing is i am due to be charged interest on the principle later this month. Will this still be charged given the fact that the balance is now zero?

And yes i know this is a borderline stupid question as i am pretty sure they charge the interest daily regardless.

Thanks anyway

When you paid off the balance did you get a final settlement balance or just pay the principal that was outstanding at the time?

Formal shorts

What Homer said. If you paid a settlement figure then that figure would have included interest pending, which as you said would have been applied daily. If you just paid the figure showing on the account, you will still owe the interest which accumulated since your interest was last applied.

Jet Black

As said if its a settlement figure you wont owe anything. You would have had to ask the bank for this.

You are usually charged 3 months of interest when clearing a loan early.