PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you pay down the principal on your car loan?
I’ve had the same car loan for a couple of years. I’m much more financially secure now than I was when I got the loan. I really want to pay it off as quickly as I can. How do you pay down the principal on a loan?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, you can usually pay down the principal on your
car loan
. But before you do, check the terms of your loan to make sure that you won’t be incurring any prepayment penalties
if you do.If you won’t incur any fees or the fees are so negligible it still makes sense to pay your loan off faster, you’re free to start tackling the principal. Be sure to discuss with your lender that you want to specifically apply the extra payments to your principal balance, or they will be more likely to credit your next month’s bill instead.
Note that paying more on your principal won’t decrease your monthly payments. If that’s your goal, you’re much better off
refinancing
your loan with the Jerry
app.Jerry is a great resource for comparing loan options from multiple lenders. Use our refinance calculator and avoid the hassle of searching for lenders yourself. Jerry makes it easy by finding the best lenders with the best rates.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies