Timely Repayment Incentive Program (TRIP)

Timely Repayment Incentive Program (TRIP) – Your Reward for On-Time Payments

We're always looking for ways to get you the lowest loan rates. So if you don't qualify to start with Patelco's lowest interest rates on a Vehicle, Signature, or Consolidation loan, our Timely Repayment Incentive Program (TRIP) can help you to reduce that rate over time.

You have the potential to receive a total interest rate reduction of up to 1.50% APR1 for making on-time monthly payments. These rate reductions can:

  • Reduce the amount of interest charged
  • Help you pay the principal loan balance faster
  • Save you money over the life of the loan

There's no need to enroll; if your new loan qualifies for TRIP, you will automatically be enrolled in the program when you fund your loan.

 
TRIP Rate Reduction Details TRIP Status Details

If your loan qualifies for TRIP, making 12 consecutive, on-time monthly payments will result in a rate reduction of up to .50% APR per year for a maximum reduction of 1.50% APR.

  • Enjoy up to three rate reductions over the life of the loan
  • The total amount your rate can be reduced depends on the floor rate2 at the time of funding
  • Your monthly payment amount won't change due to the TRIP interest rate reductions

The TRIP discount is tied to making on-time payments, so there are three situations that change your TRIP status or progress:

  1. Making a late payment
  2. Utilizing our "Skip a Pay" feature
  3. Deferring a payment due to financial hardship

If any of these situations occur, your TRIP progress is reset and you must complete 12 additional consecutive, on-time monthly payments to receive your next rate reduction.

If you are late with two payments, you will be ineligible for any further TRIP discounts.

TRIP Example*

$30,000 Auto Loan for 60 months with TRIP
In the following example, the savings due to your TRIP discounts would be $446 and your last monthly payment is reduced
Interest Rate
At Funding: You qualify for a starting interest rate based on details such as loan term, vehicle age, credit score, and account relationship - the floor rate in this example is 4.99% APR
6.89% APR
At Funding: By taking advantage of Patelco's automatic payment discount, you lower your rate by .50% APR right away
6.39% APR
Month 12: After 12 consecutive, on-time monthly payments, your rate is reduced by .50% APR
5.89% APR
Month 18: At month 18, you are late with a payment so your TRIP progress is reset and 12 consecutive, on-time monthly payments will be required to receive your next rate reduction
5.89% APR
Month 30: You've made 12 additional consecutive, on-time monthly payments after the late payment and your rate is reduced by .50% APR
5.39% APR
Month 42: You've made 12 additional consecutive, on-time monthly payments and your rate is reduced by.40% APR because you have hit the floor rate set at the time of funding for your loan; your TRIP discounts are now completed
4.99% APR

*This scenario is meant only to illustrate the Timely Repayment Incentive Program (TRIP) and does not apply to any specific rate structure. Your individual rate, terms, discounts, and savings will vary.



This is an invitation to apply and not a lending guarantee or offer of credit; standard credit qualifications apply for all loans.

Effective for applications on or after 4/22/14, the Timely Repayment Incentive Program (TRIP) is offered to members who are approved for the following loans at Patelco's credit tier 2 or higher: auto, motorcycle, RV, boat, and personal loans, excluding Seasonal Loans and all lines of credit. Total discount of up to 1.50% APR (Annual Percentage Rate) applied in .50% APR increments for every 12 consecutive on-time monthly payments. Maximum discount will never cause the final APR to be lower than the floor rate for the specific loan and term at time of funding. Monthly payment amount remains constant, with additional money going toward principal, which shortens the term of the loan and the total amount paid over the life of the loan.

A first instance of a late payment and any instance of the use of the "Skip a Pay" option or a loan payment deferral will reset any progress toward a TRIP rate reduction so that 12 consecutive, on-time monthly payments will be required for the next rate reduction. A second instance of a late payment will disqualify the member from any additional TRIP discounts for the remainder of the loan.

Changes in TRIP status will be communicated on monthly periodic statements and eStatement or by US mail. Offer may be discontinued or changed at any time without notice.

  1. APR = Annual Percentage Rate.
  2. The floor rate is the lowest available base rate for your loan type and term at the time of loan funding.