Explanation of Contract Types

Simple Interest:

Simple interest financing is a method of allocating your monthly payment between the finance charge and principal. This allocation takes into consideration the Annual Percentage Rate in your contract, the current unpaid balance of your contract, and the actual date your payment is received by PRIMUS Financial Services.

Simply put, it means that the finance charge you pay is based on the actual number of days the principal is outstanding. If you pay earlier than the scheduled payment date, you're assessed a lesser finance charge, and a greater percentage of your payment is used to reduce the principal balance. If you pay more than the scheduled payment amount, the additional amount goes toward reducing the principal balance, which will reduce future finance charges. If your payment is late, more finance charges are assessed, and a lesser percentage of your payment is used to reduce the principal balance.

Precomputed Financing

Precomputed financing is a method where finance charges on your account are calculated based on the original contract terms and due dates of your payments. So making your monthly payments either early or late will not affect the amount of finance charges you will pay. If you do make your payments late, your may be assessed a late charge, but your finance charges will not be affected. The only way you will save finance charges on this type of contract is if you pay off the account in full prior to the maturity date.

For more information, please contact our Customer Service Department at 1-800-945-8000 or email.