Alert Message

Learn how payments are allocated and applied

If Account is Current

  • First, the payment is applied to Unpaid Fees (fees are only charged in the event of a returned payment, so this step is usually skipped).
  • Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.
  • Third, the payment is applied to Unpaid Principal.

We will apply any Overpayment to next month’s payment — unless you are enrolled in Auto Pay or instruct us to do otherwise.*

For definitions of these and other terms, see our glossary of loan terms.

 

If Account is Past Due

  • First, the payment is applied to Unpaid Fees (fees are only charged in the event of a returned payment, so this step is usually skipped).
  • Second, the payment is applied to Unpaid Interest. Please note that when your payment is past due, your loan will accrue more interest than when payments have been made on time.
  • Third, the payment is applied to Unpaid Principal.

We will apply any Overpayment to next month’s payment — unless you are enrolled in Auto Pay or instruct us to do otherwise.*

For definitions of these and other terms, see our glossary of loan terms.

*Providing Special Payment Instructions

How to Provide Billing Directions for an Overpayment

For mailed payments:

When you mail an Overpayment (also known as an extra payment), you may instruct us whether you want the Overpayment to advance your next payment due date. Please include your instructions on a separate piece of paper enclosed with your payment. Be sure to include your Account Number with your instructions.

For payments made online or by phone:

You will be able to choose whether you want any Overpayment to advance your next payment due date.

Save your Overpayment billing instructions:

You may also save your Overpayment billing instructions for payments that have not yet been scheduled. This will tell us if you would like to be billed for your next full Monthly Payment Amount when you make an Overpayment that is equal to or more than the amount of future monthly payments.

Options for Overpayment billing direction include:

  • Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing.
  • Bill me for my full Monthly Payment Amount. You will be required to make a full monthly payment with your next billing statement.

To save your preferences for payments that have not yet been scheduled, log in to your Earnest account, go to your Profile, and make your selection in Overpayment Billing Directions. You may also save your preferences by speaking with our Client Happiness team by phone.