If you are reading this article, it is likely you have a Ume Loans car loan and are interested to know about ways you can pay it off faster. Let’s face it, if you can save some interest there are many ways you can spend it, right? Just imagine, saving $2000 off a loan that you had planned to pay back. What would you do with that? In this article I’m going to explain 6 ways you can pay off your Ume Loans car loan faster and put this money back in your pocket.
Ume Loans specialises in giving good people a financial Second Chance. Often these good people have some bad credit from a relationship breakup, a health issue or from being out of work in the past. Because of this, we do take more risk and lend to people that the major banks just simply won’t help. Because of this, our cost to do business is proportionately higher and we therefore need to charge higher interest rates to cover these costs and to make a modest profit so our company can keep helping customers with the financial Second Chance they need. But don’t despair, there are 6 ways you can save interest and pay your car loan off faster.
1. Pay more often
Instead of paying once a month or fortnightly, simply pay weekly if you can. Because interest is calculated daily, paying weekly will help save you a small amount of interest every single month. Not only that, take a minute to understand this; let’s say your repayments are $400 a month, instead, why not pay $100 a week. Rather than paying $400 a month over 12 months which equals $4800 you have paid in a year, you can simply pay $100 a week over 12 months which equals $5200 paid in a year. What a great way to get ahead!
2. Pay a little extra every Week
This is a really simple way to pay any loan off faster. Whatever your repayment, check your budget and if you can pay a little extra, then, as Nike would say, Just Do It! The extra you pay each week comes off the principle of the loan and over the term of your loan will end up saving you interest.
3. Don’t Skip any Payments
In today’s world of Covid19 and snap lockdowns it’s easy to call up your creditors and ask to skip a payment or two. In fact, we allow customers to do that once every twelve months, If they need to. But here is the key phrase “if you need to”. Because, if there is a way you can continue your payments it is far better for you and your credit rating to maintain your payment history.
4. Pay one large extra Payment every year
Normally each year we all receive some additional money other than our working income. It might be a tax return, the sale of your camper trailer, motorbike or jet ski. Either way, when you get that extra money, consider paying some of it on your Ume Loans car loan. Larger lump sum payments are a great way to save interest and pay your loan off faster. It’s really easy, you can either call the office on 07 5443 3863 (then press 1) and ask one of our account managers to take the extra funds as a one-off extra payment or we can give you our bank details and your reference number to credit the funds direct to our bank account.
5. Pay on time and get an Interest Rate reduction
Did you know that we love to reward our good customers with a lower interest rate after 12 months of perfect payment history? That’s right, just pay perfectly for a 12-month period and when we review your account, as a reward for your perfect payments of 12 months, we will lower your interest rate, it’s that easy!
6. With no payout fees, Refinance when you qualify
Whilst we would love you to remain a customer of Ume Loans for all your life, we understand that we are there for you when you don’t qualify for a traditional bank loan and we will help you position yourself and your credit rating to get back to being able to borrow with a lower interest rate loan. Often, just 12 months of good payment history with Ume Loans is enough to qualify for a lower interest rate refinance loan and with no early payout fees with Ume Loans, you are good to go as soon as you qualify for that lower interest rate loan.
Many of our customers originally came to us from a finance broker so a conversation with your finance broker is a good starting point as they will be able to find you the next best loan for your specific situation.