One of the most useful things you can do with a Credicorp loan, if your budget allows it, is to pay a little more than the minimum. The reason is simple: interest is calculated on the balance still outstanding. The sooner you bring that balance down, the less interest accrues — and the saving compounds over the rest of the term.
Why it matters more than people think
An overpayment made early on saves you more, in total, than the same amount paid later. That is because the early overpayment has the most months left to remove interest from. Even £20 or £30 a month extra, started early, adds up to a meaningful saving over the life of a loan.
The three easiest ways to do it
- A one-off card payment. Use our Make a Payment page any time — say, when a bonus or a small refund lands.
- A bank transfer with your usual reference. Send any amount in addition to your scheduled payments using the bank details on your statement.
- Permanently increase your Direct Debit. If you can spare a bit more each month going forward, the Set up or change a Direct Debit form on our Forms & Requests page is the route — we will confirm the new amount in writing and the date of the first revised collection.
How it is applied
Unless you tell us otherwise, an overpayment goes straight against the outstanding balance — so interest from the next interest calculation is worked out on the lower amount. If you would rather an extra payment was held against your next scheduled instalment, please say so when you pay and we will apply it that way.
Or pay it off in full
If you are thinking about settling the loan completely rather than just overpaying, ask for a settlement figure. The article on settlement figures walks through what they include and how to use them. Either approach — gradual overpayment or full early settlement — saves you money compared with sticking to the original schedule.