Deal Pack Blog
What are Prepaid Finance Charges?
What exactly are prepaid finance charges? Also known as closing costs, these are charges that are added on to a loan but are not included as part of the principal balance of the amount that is being borrowed. These charges can include a variety of items including, but not limited to, administrative fees and delivery fees.
In Deal Pack, prepaid charges can be used to adjust the loan finance charges as well as amount financed without affecting the payment amount. Once prepaid charges are added onto an account, the annual percentage rate will increase and the amount financed will decrease all while the payment amount remains the same.