But if they hold payments for that month and apply it later, then they collect less interest the following month, since interest is compounded daily. But if you pay on the same day every month, and the hold period is the same, then the interest collected will be the same since its applied at the same time every month.
Best ways to avoid paying out interest are by paying bi-weekly since some months you'll make 3 payments, which can reduce interest and save time off the length of term. Or just divide the monthly payment by 4 and pay that amount every Friday if you're a weekly-paid employee like me
