Why did I get a $20 fee on my car loan if I paid a month in advance?

"I paid my car loan on May 22 to apply it to my July payment. Now, I have a $20 fee on the statement.

Why did I get hit with this penalty for paying early?"

Answer
“Some car loans stipulate that you can’t pay more than a month or so ahead. If you do, they’ll apply a fee to your account. Check your contract to see what it says.
If you can’t find that stipulation in the contract, don’t stress. It could just be an error on their end. Give your lender a call, and they’ll be able to tell you exactly what happened.”
avatar
Eric Schad
Answered on Jun 09, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free