is usaa auto loan interest compounded monthly?


What is the term for interest compounding for USAA auto loans?


That's an excellent question, @F18-2-Bch - Our loans are simple interest loans. This means, rather than the interest compounding monthly, the loan's interest is calculating using the daily principle balance. And, there are no prepayment or principle payment penalties. This works to your benefit because it allows you to pay off your loan sooner than the maturity date and will eventually allow you to pay a lower per diem (daily interest accrual). Please don't hesitate to reach out if you have any other questions. - Cathleen