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Discussion Starter #1
4.39%
Total finance charge : 1905.14

finance amount : 13481.26
Total payments : 15386
72 months
monthly payment : 213
remaining balance : 13006


I'm paying $213 and around $50 is going to interest, but since is a simple interest loan, the interest keeps reducing every month as the remaining balance goes down. It was $49 this month.

Based on a calculator if I were to pay $100 towards principal every month, which my loan service makes it very easy on their website, I would pay off the loan in 4 years and 11 months and it would save me $609. It doesn't sound like a whole lot.

If I throw $200, it'd be paid in 3 years and 11 months and it would save me $897
If I throw $300, it'd be paid in 2 years and 6 months and it would save me $1066
If I throw $400, it'd be paid in 2 years and 2 months and it would save me $1176
If I throw $500, it'd be paid in 1 year and 10 months and it would save me $1254

and so on

I have the money to pay the car off in one lump sum now, but it would leave with me only a few thousands on savings. I could wait till the end of the year and pay in full or send more money and drag this loan out for 2 more years, so I have a longer good paying history.

My credit score is 650, so I could use the credit history in the future, is it worth it throwing thousands away? I already have a student loan, which I would pay for 20-30 years lol, so I don't know. I don't think I need it.

I could pay the car off at the end of the year and save me around $1500, that'd be 1 year of good paying history and it would stay on my record for 10 years. Besides, it would show that I was able to pay it off early.

I don't think is necessary to drag out this loan longer than 1 year. I'd rather own the car and free up money.


 

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If you need to build up credit I would keep the loan but pay a little more toward principle.

If you don't need the credit history and had the cash, I would pay it off since you are paying more in interest than the pittance you are probably getting from your checking account.

Imo

Sent from my ONEPLUS A3003 using Tapatalk
 

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Discussion Starter #3
If you need to build up credit I would keep the loan but pay a little more toward principle. Imo

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longer than 1 year? I could save like $1500

$1500 just for a few more points in the credit score, I don't know. My credit score has barely improved since I took out the loan, maybe 3 or 4 points lol. The reason my score is that low is because of mistakes I made in the past, which will fall off in 2-3 years.

I already have a student loan which I'm paying every month since 2009. The student loan has to be drag out because there is no collateral. The car, on the other hand, is a collateral that loses value with time. No reason to throw away $1500 on that loan.

So, yeah, better to keep saving money and pay it off at the end of the year.
 

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Loans should be paid off as fast as possible, there is no big upside to making payments over a long term, half the time the loan people don't even report anything to the credit bureaus unless you miss a payment.
 

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Discussion Starter #5
Loans should be paid off as fast as possible, there is no big upside to making payments over a long term, half the time the loan people don't even report anything to the credit bureaus unless you miss a payment.
It depends lol my car loan is reported to the 3 credit agencies
 

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Loans should be paid off as fast as possible, there is no big upside to making payments over a long term, half the time the loan people don't even report anything to the credit bureaus unless you miss a payment.
All of this. Do yourself a favor and pay it off, then do something worthwhile with the extra money.

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You don't have a very good interest rate and that's because of your credit score. I wouldn't pay it off all at once but I would add another $50-$100 every payment to pay it off sooner. Eventually you will be buying another car and you don't want to get stuck with that interest rate again.


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Discussion Starter #9
Yes, I don't want to get stuck with such interest rate in the future, but I also don't want to throw away thousands on interest. If I pay this loan by the end of the year, I could save like $1500. I plan on keeping this car for a long time, easily for 10 years, this would allow me to pay for next car in cash.
 

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False false false


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You can't just say something is false with 0 proof. I in fact have had more than a dozen loans over the years, from major banks, that never reported ANYTHING over the life of the loan. I also had 2 that only reported missed payments, no mention of anything made about the other 46 payments on time and the loan paid in full on time.

If you really think you can trust the banks/lenders to do their job you are a fool. If you use a second tier or lower lender then you are even less likely to get anything reported.

Do some research before you try posting that, you are the one that is wrong, wrong, wrong......
 

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Discussion Starter #11
You can't just say something is false with 0 proof. I in fact have had more than a dozen loans over the years, from major banks, that never reported ANYTHING over the life of the loan. I also had 2 that only reported missed payments, no mention of anything made about the other 46 payments on time and the loan paid in full on time.

If you really think you can trust the banks/lenders to do their job you are a fool. If you use a second tier or lower lender then you are even less likely to get anything reported.

Do some research before you try posting that, you are the one that is wrong, wrong, wrong......
I had one medical debt that only reported to Equifax, but my car loan is reporting to the three agencies, I just recently checked my reports
 

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It's good that they are reporting properly, I've had personal bank loans not report.

Still to me, I would never pay $.01 more in interest if I could pay it off early.
 

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A bit off topic but nice seeing another oneplus 3 owner.
That being said, its always best to pay off your loan quickly, especially a long duration loan, you'll be surprise how much can you save after.
 

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If it were up to me I would pay this loan off early.... unless (!!!) I had other debts with higher interest rates (cough... credit cards... cough). Always pay your highest interest rate debts off quickest and first. If you don't have any other debt over the 4.xx% for this car loan then I would start paying this off as quickly as you could.

Paying it off early will reduce the number of "on time payments" in your credit history. But paying for the full duration of the loan will essentially cost you $1500 for a few more points on your credit score. It more than likely won't matter after those few years anyways, because you'll have saved the $1500 by paying this loan off early and could use that money for improving your credit through other means, like not missing payments on credit cards or improving your debt to credit ratio (which is another determinant of your credit scores).

Credit is fickle and confusing. Hope this helps!
 

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It is always better to pay up your car loan as early as possible. Since `you have a fair credit score, there isn't a problem. However, if you have a bad credit, it is wise to refinance your car loan.

You can see the benefits of refinancing on this blog. https://www.autoloansolutions.ca/blog/can-i-refinance-my-car-loan-with-bad-credit/ . It is up to you to take a decision. Looking at your credit score, I would have paid off the loan.
 

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Just about everyone here says the same thing - ALWAYS pay it off early. I've got 2 years left on a 0.9% loan, still having about $10k to go. My credit scores are at or above 800. This is the first car in 25 years that I've had a loan on. I could have purchased this car with cash too, but even in March of 2014 my investments were doing considerably better than 0.9% so I went with the loan. Today they're doing MUCH better.

Where's the logic in paying off every loan early?
 

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I agree, and like you, I have a credit score over 800 . . . and I'm paying off a loan on a 2015 Odyssey, where I'm paying, LOL, also .9%.

But for most people who don't have investments (yet), or emergency saving stash, I generally recommend they pay off the loan, and establish a saving / investment plan for their future.

I saw today where the average retirement costs upwards of $700,000, and that is an average, some more, some less. Get started as soon as you can on that nugget. No one will loan you money to retire . . .

Work on improving your credit rating, that will help when / if you purchase a house / car with a lower interest rate, which will save you money. YMMV.
Cheers
 

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Pay off the loan, then take that monthly amount and save it. The money you make that way is more valuable than a few points on your credit score in the long run. My .02.

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Pay off the loan, then take that monthly amount and save it. The money you make that way is more valuable than a few points on your credit score in the long run. My .02.

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Agree, this sound logical and I made that way, you will save much more money
 

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It seems to me that it is best to repay the loan as soon as possible if you have the opportunity and get rid of this shit. I always used to take microloans and I had no problems with them and I have an excellent credit history, but recently I had to take a big loan in the amount of about 16,000 euros for a complete renovation of the house. Well, that was a good idea, but I experienced a lot of difficulties with repaying and was waiting for the moment when I could fully repay the loan. I was also lucky that the bank (reviews of which I found at https://credit-10.com/no/) turned out to be very loyal and I had no problems with them. So I thank them! It’s just that the problem was that in two years of repaying the loan I lost my job three times and it was a lot of stress. In the end, I managed and was able to go through all these tests, but it seems to me that I will no longer take loans!
I don't think you fully understood how a pay off works, you will not save much more money, just a little bit, much more important is the time you will save
 
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