Is it smarter to pay off your car loan over the term or pay part of it off with a lump sum?

"I recently won some money at the casino and I want to do something fruitful with it.

I was thinking about putting a large amount of it to pay down my car loan, but I don't want it to affect my credit.

Is it smart to pay off a portion of your car loan with a lump sum payment?"

Answer provided by
Eric Schad
Answered on Jun 16, 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.
“Paying down a loan is always a financially savvy move, especially if you came into the money at a casino.
Making a lump sum payment won’t affect your credit. All it will do is allow you to pay less interest over the life of the loan. Your monthly payments won’t change; just the amount of time it takes to pay it off.
Overall, it’s a great move instead of putting it all in slots.”

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