How to Pay Your Loan Through Loancare
What Loancare is and why you might pay them
Loancare is a loan servicing company that collects payments on mortgages, student loans, and other debts on behalf of the lender who actually owns your loan. You do not choose Loancare — your lender assigns your loan to them. When you receive a notice that your loan has been transferred to Loancare, it means Loancare now handles your monthly payments, sends you statements, and manages your account, but the original lender still owns the debt.
Loancare services loans for many different lenders across the country. If your mortgage or other loan was sold or transferred after you took it out, you may end up paying Loancare instead of paying the original lender. The terms of your loan do not change when it moves to a new servicer — only who collects the payment.
Key Takeaways
- Loancare collects payments on behalf of your lender, but you can pay through their website, by phone, by mail, or through automatic bank transfers.
- Setting up automatic payments (ACH) through your bank account is the fastest way to ensure your payment arrives on time and reduces the risk of late fees.
- If you pay by check or money order, mail it at least ten business days before your due date to account for postal delays.
- You can view your account balance, payment history, and due dates by logging into the Loancare website or calling their customer service line.
- If you fall behind on payments, contact Loancare immediately to discuss options like forbearance or loan modification before your account goes to collections.
How to set up automatic payments with Loancare
Automatic payments are the most reliable way to pay Loancare on time every month. You authorize Loancare to withdraw your payment directly from your bank account on a date you choose — usually a few days before your due date. This method eliminates the risk of mail delays and removes the chance you will forget to send a payment.
To set up automatic payments, log into your Loancare account online or call their customer service number (found on your statement or their website). You will need your bank account number and routing number. Loancare will ask you to choose a payment date and confirm the amount. Most servicers allow you to change or cancel automatic payments with a few days' notice, though you should check the specific terms on your account.
Automatic payments are pulled through the ACH (Automated Clearing House) system, which is a network that moves money between bank accounts. ACH transfers typically take one to two business days to process. If you set your payment date for the 15th of the month and your due date is the 20th, the money will leave your account on the 15th and arrive at Loancare by the 17th, giving you a buffer against late fees.
Paying Loancare by check, money order, or phone
If you do not want to set up automatic payments, you can pay by check or money order. Write your loan number on the check or money order and mail it to the address listed on your statement. Mail your payment at least ten business days before your due date to account for postal delays. Payments received after the due date will be marked late, and you may owe a late fee even if you mailed the check on time.
You can also pay by phone by calling Loancare's customer service line. A representative will take your payment information over the phone. Some servicers charge a fee for phone payments (usually a few dollars), so ask before you provide your information. Phone payments are processed immediately, so if you call before your due date, the payment will be recorded on time.
Online one-time payments through the Loancare website are another option. Log into your account, select "Make a Payment," and enter your bank account or debit card information. Online payments typically process within one to two business days, similar to automatic ACH transfers. Some servicers charge a small fee for debit card payments but not for bank account transfers.
Understanding your Loancare statement and account
Your Loancare statement shows your loan balance, the amount due, the due date, and how much of your payment goes toward principal (the amount you borrowed) and interest (the cost of borrowing). The statement also lists any fees, escrow amounts (money held for taxes and insurance), and your payment history for the past year.
You can access your account online through the Loancare website by creating a login or using single sign-on with your email. Your online account shows your current balance, recent payments, upcoming due dates, and any messages from Loancare. If you have questions about a charge or payment, your online account history is the first place to check.
If you do not receive a statement in the mail or cannot log into your online account, contact Loancare directly. Servicers are required to send statements at least once a month, and if you do not receive one, it may indicate a problem with your account or contact information.
What happens if you miss a payment to Loancare
A payment is considered late if it arrives after your due date. Once your payment is late, Loancare will charge a late fee (the amount varies by loan type and state). Your credit report will show a late payment after 30 days, which damages your credit score and makes it harder to borrow money in the future.
If you miss a payment, contact Loancare as soon as possible. Do not wait for a collection notice. Explain your situation — job loss, medical emergency, temporary income reduction — and ask about options. Many servicers offer forbearance (a temporary pause or reduction in payments) or loan modification (a change to the terms of your loan). These options are only available if you reach out before your account is severely delinquent.
If you fall 120 days behind on a mortgage, your lender can begin foreclosure proceedings. For other types of loans, the timeline varies, but the principle is the same: the longer you wait, the fewer options you have. Loancare is required by law to work with you on a solution if you contact them before your account reaches that point.
Transferring or updating your account information
If you move or change your phone number, update your contact information with Loancare so you continue to receive statements and notices. You can update your address and phone number online through your account or by calling customer service. If mail is being sent to an old address, contact Loancare immediately to prevent statements from being lost.
If your loan is sold to a different servicer, you will receive a notice in the mail explaining the transfer. The notice will include the new servicer's name, address, and phone number. Your payment due date and amount may stay the same, but you will need to set up payments with the new servicer. Do not send payments to the old servicer after the transfer date — they will not be credited to your account.
Frequently Asked Questions
How long does it take for a payment to show up in my Loancare account?
Automatic ACH payments and online bank transfers typically show as received within one to two business days. Payments made by phone are recorded immediately. Checks and money orders can take five to ten business days to clear, depending on postal delays and Loancare's processing time. Always allow extra time for mailed payments to arrive before your due date.
Can I pay Loancare with a credit card?
Most servicers, including Loancare, do not accept credit card payments directly because credit card companies charge high processing fees. Some third-party payment processors allow you to pay a loan servicer with a credit card, but they charge a fee (usually 2 to 3 percent of the payment). It is usually cheaper to pay from your bank account or by check.
What if I want to pay extra toward my principal?
You can pay more than your monthly payment amount, and the extra money will go toward principal, which reduces your loan balance and the total interest you pay over time. Specify in writing or in your online account that the extra amount should go toward principal, not toward future payments. Some servicers apply extra payments automatically to principal, but it is safer to request it explicitly.
Is there a penalty for paying off my loan early?
Some loans have a prepayment penalty, which is a fee charged if you pay off the loan before a certain date. Check your original loan documents or ask Loancare whether your loan has a prepayment penalty. If it does, Loancare will tell you the penalty amount and when it expires. If there is no penalty, you can pay off your loan at any time without extra fees.
What should I do if I think Loancare made an error on my account?
Contact Loancare in writing (email or certified mail) and describe the error in detail. Include your loan number, the date of the error, and what you believe happened. Loancare is required to investigate and respond within a certain timeframe (usually 30 to 45 days). Keep copies of all correspondence. If you disagree with their response, you can file a complaint with the Consumer Financial Protection Bureau.