SmartNote Information

SmartNote was the first to offer biweekly debiting for auto loan customers. With no extra effort you can accelerate the payoff of your loan, accelerate equity, and in most instances reduce the amount of interest paid. The SmartNote debiting program provides the discipline and consistency to accelerate the payoff of your auto loan while providing the flexibility to work within your budget and your pay schedule. The key is a change from paying monthly to having a half payment debited every two weeks. When 26 half payments are debited each year, two extra half debits occur semi-annually. These “extra” debits are forwarded to your lender as “principal only” payments. Interest paid is based on the current principal balance, so the interest paid is consistently reduced and the loan payoff is accelerated. Electronically debited funds are transferred under strict regulations of the Federal Reserve and deposited into a federally-insured account. This account is maintained solely for the purpose of making SmartNote customer loan and principal payments.