Is this right?

abbiesmom · 5 October 2013 at 10:28PM

Thanks for all the help so far with clearing my debts and credit files guys.

I have a question and figured you clever people could help me understand this.

I took out hpi for a car earlier this year. Have paid up-to-date and all is showing as OK on my credit report with all 3, however I recently noticed something odd.

The loan amount is not the amount I borrowed (as in the start amount). It is the amount plus interest if the loan is to run it's course.

Is this how loans are usually reported?

John1993_2 · 6 October 2013 at 7:40AM

That seems fairly normal. The amount you owe is not what's advanced to you, it's what you have to pay back.

Buzby · 6 October 2013 at 9:52AM

Sure - the amount is the full amount you agreed to pay them at the conclusion if the deal. The amount actually provided to you is an irrelevance, it is the repayment amount that matters.

jellie · 6 October 2013 at 10:30AM

It's because they will have front loaded all the interest onto the loan at the beginning.

Your mortgage, for example, will not show like this because the interest is added each month.

Is this right?

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