What Ally Auto Payment Does

Ally Auto Payment is Ally Bank's system for paying your car loan through automatic transfers from your bank account. When you set it up, Ally pulls your monthly payment on the date you choose, so you do not have to remember to pay or log in each month. The payment goes directly from your checking or savings account to your Ally car loan.

Ally offers this as an option when you finance a vehicle through them. You can enroll during the loan process process or add it later through your Ally online account or mobile app. The bank does not charge a fee for using automatic payments.

Automatic payments can help you avoid late fees and missed-payment marks on your credit report, since the money moves on schedule without you taking action. If your payment date falls on a weekend or holiday, Ally typically processes it on the next business day.

Key Takeaways

  • Ally Auto Payment automatically transfers your monthly car loan payment from your bank account on a date you select.
  • You can set up automatic payments when you first get your loan or add them later through your Ally account online or in the mobile app.
  • There is no fee to use automatic payments, and they help you avoid late payments that could damage your credit.
  • You can change your payment date, pause payments, or cancel automatic payments at any time through your account.
  • If your account does not have enough money on the payment date, Ally may charge an overdraft fee through your bank, not through Ally.

How to Set Up Automatic Payments with Ally

If you did not enroll during your loan process, you can add automatic payments through your Ally account. Log into your account on Ally's website or open the Ally mobile app, then navigate to your car loan. Look for a payments or autopay section — the exact location varies depending on whether you use the website or app.

You will need to provide your bank account number and routing number so Ally can pull payments from your account. Ally accepts payments from most U.S. banks and credit unions. You choose the day of the month when you want the payment to come out — for example, the 1st, the 15th, or the last day of the month.

After you submit your information, Ally usually confirms the setup within one business day. Your first automatic payment will process on the date you selected. You can view your scheduled payments and payment history in your account at any time.

Changing or Stopping Your Automatic Payments

You are not locked into automatic payments. If you need to change the payment date, log into your account and update it in the payments section. The change takes effect on your next scheduled payment, though Ally may need one business day to process the change.

If you want to pause automatic payments temporarily, you can do that through your account as well. This is useful if you know you will not have enough money on your usual payment date and want to avoid an overdraft. You can restart automatic payments whenever you are ready.

To cancel automatic payments entirely, go to your account settings and remove the automatic payment setup. After you cancel, you will need to make manual payments by logging into your account and paying online, by phone, or by mail. Canceling automatic payments does not affect your loan — you still owe the monthly payment on the same schedule.

What Happens If Your Account Does Not Have Enough Money

If your bank account does not have enough funds when Ally tries to pull your payment, the transfer will fail. Ally may attempt to retry the payment, but if it continues to fail, your payment will be late. A late payment can result in a late fee from Ally and a negative mark on your credit report.

Your bank may also charge you an overdraft fee if the failed transfer attempt causes your account to go negative. This fee comes from your bank, not from Ally, but it is a real cost of the failed payment. Some banks charge $25 to $35 per overdraft.

If you know you will not have enough money by your payment date, contact Ally before the payment is due. You may be able to request a payment deferment, change your payment date, or work out a temporary arrangement. It is better to call ahead than to let a payment fail.

Automatic Payments and Your Loan Timeline

Automatic payments follow your regular loan schedule — they do not speed up or slow down your loan payoff unless you change the payment amount. If your loan is set for 60 months with a $400 monthly payment, automatic payments will continue that same schedule.

Some people use automatic payments for their regular monthly amount and then make extra payments by hand when they have extra money. You can do this through your Ally account without affecting your automatic payment setup. Extra payments go toward your principal balance and can shorten your loan term.

If you refinance your car loan with Ally or move your loan to another lender, your automatic payment setup with Ally ends. You will need to set up automatic payments with your new lender or return to manual payments.

Security and Your Bank Account Information

Ally uses encryption to protect your bank account information when you set up automatic payments. Your routing and account numbers are stored securely and used only to process your car loan payments.

You can view which bank account is linked to your automatic payments in your Ally account settings. If you want to change which account Ally pulls from, you can update this information in your account. If your bank account is closed or compromised, update your payment method in your Ally account right away so payments do not fail.

Frequently Asked Questions

Can I set up automatic payments if I do not have online banking?

You can call Ally customer service to set up automatic payments over the phone. A representative will collect your bank account information and help you choose your payment date. You can still manage your automatic payments online or by phone after they are set up.

What if I want to pay more than my monthly payment?

Automatic payments process your regular monthly payment only. If you want to pay extra, you can make an additional payment through your Ally account online, by phone, or by mail. Extra payments reduce your principal and can save you interest over the life of the loan.

Does Ally Auto Payment affect my credit score?

On-time automatic payments show up as on-time payments on your credit report, which helps your credit score. Late or missed payments hurt your score. Automatic payments make it easier to stay on time, but they do not automatically improve your credit — only consistent, on-time payments do that.

Can I use automatic payments if I have a co-signer on my loan?

Yes. Automatic payments are tied to the loan itself, not to who is listed on it. Either the primary borrower or co-signer can set up or manage automatic payments through their own Ally account if they have access to the loan.

What if my payment date falls on a holiday?

Ally processes automatic payments on business days. If your chosen date falls on a weekend or federal holiday, the payment will process on the next business day. Your payment is still considered on time as long as it processes by the due date in your loan agreement.