How to Save on Loan Interest

Every dollar of interest you pay is a dollar that doesn’t go toward your financial goals. Fortunately, small adjustments to how you manage your loan can add up to huge savings over time.

1. Make Extra Payments Toward Principal

Paying more than the minimum each month directly reduces your principal balance. This cuts the amount of interest calculated next cycle and shortens your loan term.

2. Switch to Biweekly Payments

Instead of one monthly payment, make half-payments every two weeks. You’ll make 26 half-payments per year — effectively one full extra payment annually.

3. Refinance for a Lower Rate

If rates have dropped or your credit score improved, refinancing may lower your APR. Compare total interest saved using our Loan Calculator.

4. Automate and Pay on Time

Late payments trigger fees and hurt your credit score. Setting up autopay keeps you on schedule and may even earn you a small rate discount.

Final Thoughts

Reducing interest isn’t about big one-time moves — it’s about steady habits. Pay a little extra, refinance smartly, and stay consistent. Over time, these small steps can save you thousands.