Can I pay my $25,000 car loan off in full without it hurting my credit?
"I have the cash to pay off my $25,000 car loan. Right now, the interest rate is 9.5%, and I still have years to pay on it.
But I don't want to make car payments anymore. Will it hurt my credit to pay off the car loan in full? "
Answer provided by
Answered on May 26, 2021
“Paying off your loan early when you have a high interest rate and a large balance left is always a good idea.
However, you need to make sure there is no penalty for early payment of your loan. Some lenders will charge you a prepayment penalty to deter you from doing so.
Make sure to call your lender and ask for your payoff amount—don’t assume your current balance is all that you owe. By doing so, you can ensure that your loan is totally paid off. And don’t forget to request the lien release once you’ve handed over the final amount.”
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