Why Does My Balance Change?

Modified on Thu, 2 Jul at 12:18 PM

For loans that charge interest, interest is calculated and added to your account on a daily basis based on your outstanding balance.

This means that:

Your balance may increase slightly each day if there is still money left to repay.
If you make payments early or pay more than your scheduled amount, you'll reduce your outstanding balance sooner and pay less interest overall.
Full details of how interest is charged can be found in your loan agreement.

If you haven't made a payment since your last balance update, you may notice that your balance has increased. This is because interest is added daily to your account while there is still an outstanding balance.

Don't worry - this doesn't mean you'll pay more than the total amount shown in your loan agreement, provided you continue to make your agreed repayments.

Calculating interest daily means that customers who repay their loans early benefit from paying less interest overall, as interest is only charged on the balance that remains outstanding.