Tower Loan payment basics
Tower Loan is a consumer finance company that offers personal loans, typically to borrowers who may not have access to traditional bank lending. When you take out a Tower Loan, you agree to repay the borrowed amount plus interest in regular installments. Payments are usually made monthly, though the exact schedule depends on your loan agreement and the terms you were offered.
Tower Loan operates physical locations in multiple states and also offers online loan services. Your payment method and schedule are set when you sign your loan documents. Most borrowers pay through automatic bank transfers, though some locations may accept in-person payments at their offices or through other methods. The amount you owe each month stays the same throughout the loan term unless you have a variable-rate loan, which is less common.
Your loan agreement specifies the total amount borrowed, the interest rate, the number of months you have to repay, and your monthly payment amount. Before making your first payment, you should have received a disclosure document that shows all these terms. If you cannot locate yours, contact Tower Loan directly to request a copy of your loan agreement or payment schedule.
Key Takeaways
- Tower Loan monthly payments are fixed amounts set when you sign your loan agreement, and you can find the exact payment due date and amount in your loan documents.
- Most Tower Loan payments are made through automatic bank transfers, though some borrowers may pay in person at a Tower Loan office or through other methods depending on location.
- If you miss a payment or pay late, Tower Loan will typically charge a late fee and may report the missed payment to credit bureaus, which affects your credit score.
- You can contact Tower Loan directly to discuss payment options if you are having trouble making a scheduled payment, such as requesting a payment plan adjustment.
- Paying off your Tower Loan early may save you money on interest, though some loan agreements include prepayment penalties that you should review before paying extra.
Finding your payment amount and due date
Your monthly payment amount and due date are listed in your original loan agreement, which you received when you took out the loan. This document shows the loan amount, interest rate, loan term in months, and the exact dollar amount due each month. If you set up automatic payments, your bank statement will also show the regular deduction.
Tower Loan typically sends payment reminders before your due date, either by mail, email, or text depending on your contact preferences and what you set up when you opened the account. You can also log into your Tower Loan account online or call their customer service line to view your current balance, payment history, and next payment due date. Having this information on hand helps you plan your budget and avoid accidental late payments.
Setting up and changing automatic payments
Most Tower Loan borrowers set up automatic payments from their bank account when they first receive the loan. This means the payment amount is withdrawn automatically on the same day each month, usually a few days before or on your due date. Automatic payments reduce the risk of forgetting to pay and help you avoid late fees.
If you did not set up automatic payments initially, you can contact Tower Loan to arrange them. You will need to provide your bank account number and routing number so Tower Loan can set up the automatic transfer. If you want to change the payment date, the amount, or the bank account used, call Tower Loan customer service or visit your online account to make the adjustment. Changes typically take effect within one to two billing cycles.
If you prefer to pay manually instead of using automatic transfers, you can make payments online through your Tower Loan account, by phone, or in person at a Tower Loan office if one is near you. Manual payments give you more control over the exact timing but require you to remember to pay on time each month.
What happens if you miss or are late on a payment
If your payment is not received by the due date, Tower Loan will charge a late fee. The amount of this fee is specified in your loan agreement and varies depending on your loan terms and state law. A single late payment can also be reported to credit bureaus, which lowers your credit score and may affect your ability to borrow money in the future.
If you miss multiple payments, Tower Loan may take additional steps such as calling you to collect the debt, sending written notices, or eventually referring your account to a collection agency. In some cases, Tower Loan may pursue legal action to recover the money owed. The longer you go without paying, the more serious the consequences become.
If you know you will have trouble making a payment, contact Tower Loan before the due date. Many lenders are willing to work with borrowers who communicate proactively. Tower Loan may be able to adjust your payment schedule, defer a payment to the end of your loan term, or discuss other options that fit your situation. Waiting until after you miss a payment makes these conversations much harder.
Paying off your Tower Loan early
Paying off your Tower Loan before the end of the loan term can save you money on interest charges. The sooner you repay the full balance, the less interest you owe overall. Some borrowers make extra payments toward principal, while others pay a lump sum when they have the money available.
Before making an early payment, check your loan agreement for any prepayment penalties. Some loans include a fee if you pay off the balance early, which would reduce or eliminate your interest savings. If your loan does not have a prepayment penalty, paying extra is a straightforward way to reduce the total cost of borrowing.
To make an early payment or a lump-sum payment, contact Tower Loan and specify that the extra money should go toward your principal balance rather than being applied to future payments. This ensures the payment reduces what you owe and saves you the most interest. You can make early payments through the same methods as your regular payments: online, by phone, or in person.
Disputing a payment or account error
If you believe Tower Loan has recorded a payment incorrectly, charged you the wrong amount, or made an error on your account, contact them in writing to dispute it. Keep copies of your bank statements, payment confirmations, and any correspondence with Tower Loan. Explain the error clearly and provide the dates and amounts involved.
Tower Loan is required by law to investigate your dispute within a certain timeframe, typically 30 days. During the investigation, the disputed amount may not be reported as late or delinquent, though you should continue making your regular payments on the undisputed portion. Once Tower Loan completes their investigation, they will notify you of the outcome and correct any errors if they find one.
Frequently Asked Questions
Can I change my Tower Loan payment date?
Yes. Contact Tower Loan customer service or log into your online account to request a new payment date. The change usually takes effect within one to two billing cycles. If you have automatic payments set up, you may be able to change the date yourself through your account settings.
What should I do if my automatic payment failed?
Check your bank account to confirm the payment did not go through. Contact Tower Loan when ready to report the failed payment and learn about a late fee was charged. You can arrange to make the payment right away through another method. If the failure was due to a bank error, ask your bank for documentation and provide it to Tower Loan to dispute any late fees.
Does Tower Loan accept partial payments?
Tower Loan's policy on partial payments varies by location and loan agreement. Some offices accept partial payments and credit them toward your account, while others require the full monthly payment. Contact Tower Loan directly to ask whether partial payments are an option for your loan and how they would be applied.
Will paying off my loan early hurt my credit score?
Paying off a loan early does not hurt your credit score. In fact, closing an account in good standing by paying it off on time is viewed positively by credit bureaus. Your credit score may dip slightly in the short term because you have less active credit, but this effect is temporary and minor compared to the benefit of paying off debt.
How do I know if my Tower Loan payment was received?
If you pay online or by phone, you should receive a confirmation number when ready. Check your bank statement to confirm the money left your account. Log into your Tower Loan account online or call customer service to verify the payment was posted. Automatic payments typically post within one to two business days of the scheduled date.