Can i make a Principal payment to GE Capital?

[jlcj7]

I always pay more than my payment to GE Capital Retail Bank and notice it just keeps deducting from future payments and not principal. I have looked closely on the statements and dont see any not about making an additional principal only payment... Anyone done this?

 

[Glassman]

Call them.

 

[davel501]

+1 on calling them. They have different versions of the loan. I noticed on mine that it does say $0.00 but the balance tracks pretty close to Quicken on the extra payments. I called them once and the lady was kind of snotty but explained at the time that it was $8 interest every day so there was some lag between when I paid and when they got it. The docs do not say you have to specify excess to principle but I always do.

 

[jlcj7]

Been a while since i asked the question, but i did call. You can make a principal only payment (in additional to monthly payment with interest) but you have to mail to another address... If anyone is interested it is now below (*GE Capital Retail Bank is now Synchrony Bank):

Mail to:
950 Forrer Blvd
Suite OH3-4272
Kettering, OH 45420-1469

 

[bobbie]

i've been making additional principal payments for a few months now....no problem getting applied correctly. i always send a letter with my check to the kettering address above. 4 year loan is a lot better than a 15 year loan!

 

[OrangeTJ]

Wait....so if my normal payment is $250 but I send $450, the principal is not automatically reduced by the extra $200? Where does it go?

 

[davel501]

Wait....so if my normal payment is $250 but I send $450, the principal is not automatically reduced by the extra $200? Where does it go?

Read your contract. There are different terms out there for more recent years than older years.

On mine the payment is applied to the interest incurred since the last payment then to the principle balance. I have been paying extra since the beginning so my payment due always shows $0. The balance will only show $0 for 6 months then goes back to normal no matter how far ahead the account is paid. During this time interest will still accrue at 1/365th of your balance x interest rate that your next payment(s) will be applied to first so skipping a payment can quickly wipe out any lead you have built up. That said, having a balance of $0 due means no late fees so that is cool.

 

[OrangeTJ]

Just looked at mine. Sounds like same deal - payment applied to interest incurred since last payment then to the principal. Like the poster above, I pay extra every time an always show a $0 payment due. I just wanted to be sure I wasn't prepaying interest and not knowing it!

 

[TechRider]

x2 with @davel501

They calculate interest by the day on my loan and deduct that first then apply the rest to principal. They also say you don't have to make a payment until xx/xx/xx assuming you do not make another payment until that date.

I have a spreadsheet that shows by month how much interest I pay and what comes off of principal assuming I make the same over-payment. I also calculated how long it will take to pay off the loan by making my over-payment.

If you are interested in getting a copy PM me.