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
“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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Eric Schad
Answered on May 26, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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