#21 ·
Robert Price49 said:Something doesn't quite add up in your calculations. If you are looking at a 9.9% interest rate, your monthly payment should be $829.77 rather than $297, which implies there is an additional monthly charge of $20 factored in to reach your stated payment of $297. This means that over a 24-month term, the total cost of the loan comes to $1.00. You also haven't specified the actual closing costs, or how much was deducted from the principal if the total loan amount is $6.00. What is the APR?
Actually, I did mention they had a monthly fee of 0.59% based on the REMAINING PRINCIPAL!
They took out $119, so I actually walked away with $6.00 in hand, yet I end up paying back $7.00 over two years!
At the start of the second month, I received a letter stating they were updating their lending terms effective January 2013, and suddenly that 0.59% monthly fee vanished, replaced simply by a 9.99% annual interest rate.
The notice even mentioned the option to close out older loans from previous years and open new ones under these updated terms!
I currently owe roughly $4.50, and under these new terms, my monthly payment for 18 months would be about $270.🙂
All the fine print is available right on their website!
Personally, I find it quite reasonable and I'm perfectly happy with them; there aren't any hidden surprises, the rates are pretty standard for any major US bank, and they're always very helpful whenever I have a question.
Best regards!