We’ve all faced situations that we wish we could erase, change, or otherwise go back in time to alter in some way. Maybe you said the wrong thing, made a mistake or just did something flat out embarrassing — the sorts of things that are bound to play out in your head on repeat for years to come (yeah, you know the ones). The good news is at least you know you’re human! The bad news: the time machine still hasn’t been invented.
But while you can’t undo that boneheaded comment you said to your partner or that poorly timed coffee spill, they fade from memory over time. Financial mistakes — well, those can impact you for years to come. Take loans for example. You know it’s smart to pay your debt off sooner, but you're dealing with all the nagging “what if” scenarios in the back of your mind. (What if my my fridge is on the fritz? What if my car breaks down?) And if you do actually need that money back, there’s never been anything you could do about it. Well, until now that is.
Introducing the Kasasa Loan®, the only loan with Take-Backs™!
What is a Take-Back™?
In its most basic form, a Take-Back is the ability to withdraw anything extra you’ve paid toward your loan, at any time, for any reason. So if you’ve overpaid on your loan to try and get out of debt sooner, but suddenly you need that money, you can get it.
How do Take-Backs™ work?
Let’s break it down into a little more detail. It all comes down to how you choose to pay off/utilize your loan:
You can choose to pay the minimum monthly payment and stay on track to pay off your loan as projected (aka, treat it like any regular loan out there).
Or, if you have extra funds, you can choose to put them toward your balance to get ahead and save on interest.
If life throws you a curveball or your financial priorities shift, you can withdraw some or all of the funds you paid ahead one, beyond your normal required payments.
The funds are transferred into your account, and your loan balance and payoff schedule automatically adjust to reflect new change.
What does a loan with Take-Backs™ look like?
Say you got a nice bonus from work (high five!), and you decide to put it toward paying off your auto loan sooner. Then a few months later, a once-in-a-lifetime travel opportunity pops up that you could use some cash for. You could dip into the extra funds you’ve accumulated on your loan to cover your travel expenses. Your loan would then automatically shift back the payoff timeline to reflect this change, but never beyond where you would naturally be had you never paid ahead.
What are the benefits of a loan with Take-Backs™?
You may be thinking, “What’s so great about this loan and is this basically just a line of credit?” There are actually several benefits of choosing a take-back loan, including:
1. The Kasasa Loan enables you to get out of debt faster.
When you know you have a “rainy day” or “uh-oh insurance” fund, so to speak, it makes it a whole lot easier to apply cash you may have otherwise held onto toward your loan. Even if something does come up along the way and you need to dip into those funds, you may not need to use all of it. It’s also more likely you’ll get into the habit more consistently paying more toward your debt, which helps you to...
2. Pay off your loan sooner and save on interest.
Anything extra you pay on top of your regular monthly payment is automatically applied toward the principal balance of your loan. There are many benefits to paying off your debt sooner (see Why Pay More than the Minimum?). But in a nutshell, paying down your loan on an expedited timeline reduces the amount of interest owed and thus, the overall amount you pay over time.
3. You have more visibility into where you stand on your loan.
Rather than digging up old amortization tables, managing your loan is super simple with a Kasasa Loan®. Your loan status is reflected in real time and always available via a mobile app. An easy-to-understand graph breaks down numbers from “finance speak” into something that’s super easy to digest. You can even play around with the platform to test different scenarios you’re considering — like how long it would take to pay off your loan if you paid $X amount extra each month or what it would look like if you used funds from your Take-Back™ balance.
4. It's easier and (typically) cheaper than securing a line of credit.
With a line of credit, your terms continue to extend as you take out additional funds, so there’s an indefinite ending. Whereas with a Kasasa Loan®, the terms will never go beyond what you initially planned for. Also, a line of credit typically entails more long-term, holistic planning. Whereas with a Kasasa Loan®, you can easily take a loan out for one simple need at the time, but still have the ability to cover other things that come up along the way.
Do Take-Backs™ cost me anything to use?
Aaaand your next thoughts are probably along the lines of, “Well all of this sounds good, but surely there’s some sort of catch, right?” Totally valid question based on what you’ve probably grown accustomed to as the banking norm (especially in the land of too-big-to-fail megabanks). But in this case, there is no catch. There are no penalties or fees associated with utilizing a Take-Back™ or paying ahead on your loan. The rate stays the same the entire time, too.
Do all loans come with Take-Backs™?
Although it probably seems like this feature is a no-brainer and all loans should come with it, Kasasa Loans® are the first and only loans that come with Take-Backs™.
How can I get a loan with Take-Backs™?
Great question! Kasasa Loans® are exclusively available at community banks and credit unions — financial institutions that prioritize putting people before profits. So you can’t find them at the big banks that...well… do just the opposite. Check in with the community financial institutions near you to inquire whether they offer the Kasasa Loan.