What TD Auto Payment Is and How It Works
TD Auto Payment is TD Bank's system for paying your car loan through automatic transfers from your checking or savings account. Instead of writing a check or logging in each month, the bank pulls your payment on a date you choose, usually around the same day each month. The payment goes directly to your TD auto loan account.
TD offers this as an option when you take out an auto loan through them, and you can set it up during the loan process or add it later through your online banking account. The bank does not charge a fee for using automatic payments. Once it is set up, the transfer happens without you having to do anything — which is why many borrowers use it to avoid late payments.
You control the payment date (within limits set by your loan agreement) and can change or pause the automatic transfer if you need to, though pausing means you will need to pay manually that month or risk being late.
Key Takeaways
- TD Auto Payment automatically transfers your monthly car loan payment from your bank account on a date you select, with no fee charged by the bank.
- You can set up automatic payments when you first get your loan or add it later through TD's online banking portal or by calling customer service.
- If you do not have enough money in your account on the payment date, the transfer may fail, and you could be charged an overdraft fee by your bank plus a late fee by TD.
- You can change your payment date, pause a single payment, or cancel automatic payments entirely, but you remain responsible for paying on time each month.
- If you miss a payment, contact TD when ready — the sooner you pay, the less damage to your credit score and the lower your total cost.
How to Set Up TD Auto Payment
If you already have a TD auto loan and want to turn on automatic payments, log into your TD online banking account. Go to the Payments section, select your auto loan account, and choose the option to set up automatic or recurring payments. You will need to pick the payment date (usually between the 1st and the 28th of the month) and confirm the amount.
If you do not use TD online banking or prefer to set it up by phone, call TD Auto Finance customer service at the number on your loan statement. A representative can walk you through the process and confirm your payment date and amount. The setup usually takes a few minutes and goes into effect within one or two business days.
Before you set up automatic payments, make sure your checking or savings account has enough money to cover the payment each month. If the account does not have sufficient funds on the payment date, the transfer will fail. Your bank may charge you an overdraft fee, and TD will charge you a late fee on top of that.
What Happens If Your Automatic Payment Fails
If TD tries to pull your payment and your account does not have enough money, the transfer will not go through. TD will typically try again a few days later, but if it fails a second time, your account will be marked as late. You will receive a notice from TD about the missed payment, usually by mail or email.
A late payment triggers two separate charges: your bank may charge you an overdraft fee (typically $25 to $35), and TD will charge you a late fee (the amount depends on your loan agreement, but is often $10 to $25). More importantly, a late payment stays on your credit report for seven years and can lower your credit score by 50 to 100 points or more, depending on how late you are.
If you know your account will not have enough money before the payment date, contact TD when ready. Explain the situation and ask if they can defer the payment to a later date or set up a payment plan. Some lenders will work with you if you reach out before you miss the payment rather than after.
Changing or Canceling Your Automatic Payment
You can change your payment date, pause a single payment, or stop automatic payments altogether through your TD online banking account. Log in, go to Payments, select your auto loan, and look for the option to modify or cancel the automatic transfer. Changes usually take effect within one or two business days.
If you cancel automatic payments, you become responsible for paying manually each month. You can pay online through TD banking, by phone, by mail, or in person at a TD branch. The payment must arrive by the due date shown on your loan statement, or you will be charged a late fee.
Pausing a single payment (rather than canceling the whole setup) is useful if you know one month will be tight but you want automatic payments to resume the following month. Just remember that you still owe that month's payment — pausing does not erase it. You will need to pay it manually before the due date.
When to Contact TD About Payment Problems
Contact TD Auto Finance as soon as you know you will have trouble making a payment. The sooner you reach out, the more options you may have. TD can sometimes defer a payment, extend your loan term to lower your monthly payment, or work out a temporary payment plan if you are facing a short-term hardship.
If you have already missed a payment, call TD when ready. Paying as soon as possible limits the damage to your credit score. A payment that is 30 days late is reported to credit bureaus, but a payment that is only 15 days late may not be. The longer you wait, the worse the impact on your credit and the higher your total cost in late fees and interest.
You can reach TD Auto Finance customer service at the number on your loan statement or through your online banking account. Have your loan number and account information ready when you call.
Alternatives If Automatic Payments Do Not Work for You
If automatic payments are not a good fit — for example, if your income is irregular or you prefer to manage each payment manually — you can pay by other methods. TD accepts payments online through their website or mobile app, by phone, by mail, or at a TD branch. Online and phone payments usually post within one business day.
Some borrowers set up automatic payments for a lower amount than their full monthly payment, then pay the remainder manually when they have the money. This approach reduces the risk of an overdraft but requires discipline to make sure you pay the full amount by the due date.
Another option is to set your automatic payment date for a few days after you typically receive your paycheck. This timing reduces the chance that your account will be short on funds when the payment is due.
How Automatic Payments Affect Your Credit and Loan
On-time automatic payments help your credit score because payment history is the largest factor in credit scoring — it accounts for 35% of your FICO score. If you make every payment on time, your score will improve over the life of the loan. Automatic payments make this easier because you do not have to remember to pay each month.
Automatic payments do not change the interest rate you pay or the total cost of your loan. They are straightforward a way to transfer money from your account to TD. Your interest rate was set when you took out the loan and does not change based on how you pay.
If you are behind on payments, catching up does not when ready erase the late marks from your credit report, but it stops additional damage. A late payment stays on your report for seven years, but its impact on your score decreases over time, especially if you make all future payments on time.
Frequently Asked Questions
Can I change my automatic payment date if I get paid on a different day?
Yes. Log into your TD online banking account, go to Payments, select your auto loan, and choose a new payment date. You can usually pick any date between the 1st and 28th of the month. Changes take effect within one or two business days, so plan ahead if you are switching to a date closer to your payday.
What if TD takes the payment twice by mistake?
Contact TD Auto Finance when ready and explain what happened. They can review your account history and issue a refund or credit if a duplicate payment was made. Keep records of your bank statements showing both charges so you have proof when you call.
Does TD Auto Payment work if I have a joint account?
Yes, as long as the account is in your name or you are an authorized user. The payment will be pulled from whichever account you link to your auto loan during setup. Make sure the account holder knows the payment will be coming out each month so there are no surprises.
Can I set up automatic payments if I am behind on my loan?
You can set up automatic payments at any time, but if you are behind, TD may require you to catch up on past-due amounts first. Call TD to discuss your situation — they may allow you to set up automatic payments for current and future payments while you work out a plan for the arrears.
What happens to my automatic payment if I refinance my TD auto loan?
When you refinance, your old loan closes and a new one opens. Your automatic payment will stop pulling from the old account. You will need to set up automatic payments on the new loan through your online banking account or by calling TD. Do this before your first payment is due on the new loan to avoid missing a payment.