Calculating the Monthly Reward Amount
Your reward percentage is calculated by adding up your reward earned for each action in the month. This reward percentage is multiplied by your finance charge to calculate the amount of your monthly award. Your monthly payment is automatically reduced by this reward amount.*
An Example
Mary has a RateReward loan with a base monthly payment of $210. Her payment is comprised of $110 of interest and $100 of principal. Let's see how her reward would be calculated based on her recent banking and credit history.
| Paid all accounts on time 3 months in a row |
Qualify for monthly rewards |
| Reduced total debt by $50 for 3 months in a row |
7.5% |
| Spent less than $600 on credit 4 months in a row |
10% |
| Did not increase savings by $50 this month |
0% |
| Has collateralized her loan with an auto title |
20% |
| Total Reward Percentage |
37.5% |
Monthly Reward Amount
$41
37.5% * $110 Interest Cost
New Monthly Payment*
$169
$210 Base Payment - $41 Reward
* We will use our best efforts to calculate RateRewards such that they can be used to reduce the monthly payment. However, in certain circumstances this may not be possible. In such cases, the RateRewards will be applied as an interest discount to your loan without reducing the monthly payment, usually resulting in a higher principal payoff.