Yes, it is possible to pay off a snap finance loan early. Snap finance offers installment loans that allow borrowers to pay off the balance in fixed monthly payments over a set repayment term. However, most personal loans, including those from Snap Finance, can be paid off early without penalty. This allows borrowers to save on interest by paying down the principal faster.
What is Snap Finance?
Snap Finance is an online lender that provides installment loans to consumers to finance big ticket purchases from partner retailers. The loans allow buyers to spread out payments over 12, 18, or 24 months through fixed monthly installments. Snap Finance partners with major retailers like Best Buy and Lowe’s to offer financing on items purchased through their stores.
When you make a purchase at a Snap Finance partner retailer, you have the option at checkout to apply for a Snap Finance loan rather than paying the full amount upfront. Based on a soft credit check, Snap Finance will determine your eligible loan terms and require you to make a down payment. The remaining balance is financed through the installment loan and paid back monthly over the chosen repayment term.
Features of Snap Finance Loans
Some key features of Snap Finance loans include:
- Loan amounts from $250 to $4,500
- Fixed monthly payments and terms of 12, 18, or 24 months
- Annual percentage rates (APRs) from 0% to 29.99% based on credit
- No prepayment penalties
- Soft credit check that does not affect your credit score
- Quick online application process with fast funding
The set repayment terms and predictable monthly payments make it easy to budget for a Snap Finance loan. Borrowers can select the term length that best fits their budget and financial situation.
Can You Pay Off a Snap Finance Loan Early?
Yes, Snap Finance installment loans can be paid off early without any extra fees or prepayment penalties. This allows you to pay down the principal faster and reduce the total interest paid over the life of the loan.
Snap Finance does not charge borrowers extra for paying off all or part of the loan early. So you have the flexibility to pay more than the monthly payment if you want to pay off the loan faster and save money.
Strategies for Early Repayment
Here are some strategies to consider if you want to pay off your Snap Finance loan before the end of the repayment term:
- Pay extra each month – Make biweekly or semi-monthly payments instead of monthly to add an extra payment each year. Or pay a little extra each month to chip away at the principal.
- Pay a lump sum – Use a tax refund, bonus, or other source of funds to make a one-time extra payment on the principal balance.
- Refinance – Consider refinancing to a shorter loan term to pay off the balance faster. Make sure to compare interest rates to ensure refinancing makes sense.
- Pay off in full – If you come into a large sum of money, you may choose to pay off the entire Snap Finance loan in one payment.
Steps to Pay Off a Snap Finance Loan Early
Follow these steps if you want to pay down your Snap Finance loan ahead of schedule:
- Log in to your Snap Finance online account or mobile app.
- Review your account balance and monthly statements to understand your outstanding principal.
- Make payments above your monthly minimum by any of the methods below:
- Use the mobile app to pay extra and select that it is applied to the principal
- Pay online and direct extra funds to go toward the principal balance
- Mail a payment with written instructions to apply it to principal
- Call customer service and request any extra payment be applied as principal
The key is communicating clearly with each extra payment how you want it applied so Snap Finance does not just put it toward the next month’s payment. Stay organized and follow up to make sure extra principal payments bring down your balance.
Benefits of Early Repayment
Below are some of the main benefits of paying off your Snap Finance loan ahead of the initial payment schedule:
- Less interest paid – Since interest accrues each month on the outstanding principal balance, paying down the principal faster means you pay less interest overall.
- Shortened term – You’ll be debt-free sooner by finishing payments early.
- Lower total cost – Paying less interest and reducing the loan term saves you money overall.
- Improved cash flow – You free up monthly cash flow sooner when the loan payments end.
- Faster access to credit – Repaying loans early helps your credit utilization and mix of credit.
For borrowers who qualify for lower rates, the interest savings from early repayment may be minimal. But for those with higher rates, paying off the loan faster could make a significant dent in interest fees.
Risks and Considerations
While early repayment of a Snap Finance loan can save you money, there are some factors to keep in mind:
- Make sure you have adequate emergency savings before putting extra money toward debt repayment.
- Be aware of any prepayment penalties on other debts before focusing on the Snap Finance loan (though Snap Finance does not charge any).
- Understand how accelerated repayment affects your monthly cash flow and budget.
- Review all debts and interest rates to prioritize repayment – sometimes other debts like credit cards make more sense to pay off first.
The smart approach is looking at the full financial picture rather than just the Snap Finance loan in isolation. Make sure early repayment helps your finances overall.
Alternatives to Consider
While paying off your Snap Finance loan faster is a good option, here are a couple other things to consider:
- Lower interest debt – If you have credit card balances or another loan with higher interest, it may be better to focus on paying that down faster instead.
- Savings goals – If you need to build an emergency fund or save for other financial goals, divert extra funds to savings rather than accelerated debt repayment.
- Lower payments – For monthly cash flow relief, call Snap Finance to explore extending the repayment term to lower your monthly payments.
- Debt consolidation loan – Consider rolling high-interest debts into a consolidation loan at a lower rate to pay off debts faster.
Crunch the numbers and think about both short and long term financial goals to decide if early repayment of your Snap Finance loan is the optimal use of funds at this time.
Pro Tips
Follow these pro tips when it comes to early repayment of Snap Finance loans:
- Automate payments for seamless extra monthly contributions toward principal.
- Target any windfalls like tax refunds to make large dents in the principal.
- When you make extra payments, clearly specify funds should go to principal in writing.
- Chat with a Snap Finance representative online or by phone to check on payoff requirements.
- Consider refinancing for a shorter loan term to increase monthly payments and pay off faster.
- Plug your loan details into an online calculator to estimate interest savings from early repayment.
- Set up account alerts to stay on top of your balance as you accelerate repayment.
Frequently Asked Questions
How do I calculate my payoff amount?
Log into your Snap Finance account online or on the mobile app to view your current balance. This is the payoff amount needed to pay the loan off in full. You can also chat with customer service to confirm the payoff amount.
Where should I send the payoff payment?
You can make a payoff payment via the mobile app, online account portal, by phone, or by mailing a check. For a mailed payoff payment, send the check to Snap Finance LLC, P.O. Box 26561, Salt Lake City, UT 84126. Include your loan account number and “PAYOFF” on the check.
Will I pay a penalty for paying off my loan early?
No, Snap Finance does not charge borrowers any prepayment penalties or fees for paying off a loan early.
How can I minimize interest charges?
To reduce total interest paid, focus on throwing every extra dollar possible toward the outstanding principal on your loan. Making biweekly payments instead of monthly can help pay down principal faster as well. Minimum monthly payments will incur the most interest over the full loan term.
Should I pay extra toward principal or make full payoff?
It often makes sense to start by making extra payments toward principal each month before making a full payoff payment. This incrementally reduces your balance. When you’ve paid down a good portion and have a windfall of cash, you can then opt to finish it off by paying the remainder off in full.
Conclusion
Paying off a Snap Finance personal loan ahead of schedule is completely allowed without penalty. This offers borrowers a great opportunity to reduce interest fees and become debt-free faster. By making extra principal payments when possible, you can pay minimal interest and significantly shorten your loan repayment timeline. Just be sure to budget carefully and clearly specify any extra payments should go toward principal when submitted. With a focused early repayment strategy, you can pay off your Snap Finance loan in less time and at a lower overall cost.