Question about Loan and Auto Bill Pay

The MergThe Merg Member ✭✭✭✭
edited March 2018 in
Okay, I'll try to explain this as well as I can... I am using Q2012 H&B on Windows 7.

I have a small loan with a small bank that was used to finance a purchase. The bank is not listed within Quicken. Also, if I pay on-line with them, they charge a convenience fee (don't get me started on that). So, I figured I would set up an on-line payment via my main bank account so that I don't have to worry about sending a check and I can avoid the convenience fee. Also, while the loan is set for 5 years, if I pay it off within 12 months there is no interest, so that is what I am intending on doing.

Here's the deal though... If I create the account as a loan, it creates a payment, but that payment is set up to split the amount among principal and interest. Also, if I tell it that it is an on-line payment, while it lets me choose that option, it will not let me select that it is a recurring payment. In this case, it will let me enter in the full mailing info for the bank to include the account number.

So, I looked at setting it up as a credit card. That works fine. I can put in the starting balance and then just specify what I want to pay each month for 12 months. For this, I can specify that it is a recurring payment. When it shows in the BillMinder, it has a Pay button, which when I select that, it sends that payment my bank which then created a recurring Bill Pay.

My question though is which is truely the best way to document this loan? I'm still not quite sure why I couldn't specify a recurring on-line payment when I set up the account as a loan.



  • Howard RoarkHoward Roark Member ✭✭✭✭
    edited August 2016
    If you setup the recurring payment at your billpayer, there is no need to setup a recurring online payment in Quicken. In fact, doing so would setup a second recurring online payment with your billpayer. And since your bank doesn't do downloads to Quicken, you couldn't (actually, can't) setup any online transactions with them via Quicken.

    Fortunately, there is no need for you to setup any online payment for your situation: the online setup is already done. All you need is a regular Quicken scheduled payment transaction.

    As to the loan, I doubt that you can setup just one Quicken loan that will deal with the option you have: I think you'll have to choose one setup (either a standard Quicken loan at the quoted interest rate, or a zero interest Quicken loan) and use that.

    In either case, you should be able to use the Quicken Loan Wizard created "scheduled transaction" for the payments.
  • The MergThe Merg Member ✭✭✭✭
    edited March 2017
    Sorry, I don't think I was as clear as I needed to be...

    The Loan Bank can't download to Quicken. My normal bank can download and also has Bill Pay enabled via the web or via Quicken.

    When I tried to create it as a Loan in Quicken, it would not let me set up the loan payment as recurring. If I set it up as a Credit Card, it would allow me to set up a recurring Bill Pay through Quicken. I was not setting up the Bill Pay directly on my bank's website.

    As for the two types of loans you mention, standard Quicken loan or zero-interest Quicken loan, are you just referring to how I should specify the terms when setting up the loan? For example, set up the loan to be a 12 month loan at 0% interest or set it up for 5 years at 16.99%. By setting it up as a 12 month at 0% interest, I would then let it calculate the monthly payment, which would be all principal and payment of that every month would of course pay it off in 12 months.

  • Howard RoarkHoward Roark Member ✭✭✭✭
    edited August 2016
    While the extra, one-time, effort to setup a repeating online payment with the billpayer is trivial; you can setup a repeating online loan payment thru Quicken, IF the billpayer accepts billpay instructions from Quicken (not all do).

    In order to use a Quicken repeating online payment for a loan payment, you need to create the Quicken repeating online payment in Quicken first. Then you can use that repeating payment transaction when you create the Quicken loan, or modify the existing Quicken loan.

    For an existing Quicken loan (after you have created the Quicken online repeating payment), you would click "Choose Loan" in the View Loans dialog, click its "Edit Payment" button, enter the Online Payee in the "Payee" field, click the "Payment Method" button, select the Quicken billpay "Account to Pay from", and choose "Repeating online payment" from the Payment Type options.

    "For example, set up the loan to be a 12 month loan at 0% interest or set it up for 5 years at 16.99%"?

  • dougpdougp Member ✭✭✭
    edited March 2018
    So, if I understand, you have set up your Main Bank to pay Small Bank monthly, 1/12 of your Loan each month? If your main bank is like mine, a recurring payment amount can be defined with both a frequency and term. Once that's done, now you just need to keep track of it.

    Set up a "xxx Loan" account in Quicken: Loan Amount, 12 months with 0% interest and 0.00 payment (or let Q calculate the payment and reset the payment to 0.00). You'll define the payment amount elsewhere, and you might decide to change it in a few months anyway. Make it easy.

    Select the calendar date you want the payment to show up in your register, right-click "Add Reminder" and set up a "Transfer Reminder" (use whatever description you want).  On the "Due Next On" line click "change" and set up the Start Date, How Often, and End Date.

    Set the From account: "Main Bank"  and the To account: "xxx Loan Account"

    Under "Optional Settings" (change) the "Remind me..." to "Automatically enter" (however many days in advance, I use 0).

    That's basically it. Me, if a loan doesn't evenly divide by 12, I make the first payment through my Main Bank as a One-Time payment so the rest (recurring) will come out even. If during the year you decide to make more or fewer payments you'll need to adjust it at your Main Bank website and edit it on the calendar.

    If you decide to extend the term and start paying interest you can edit the Loan to do whatever you want with the P&I split.  FWIW, Quicken 2012 has lost my faith & trust so I don't ask the program to do anything other than keep records. YMMV
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