Ruroh! 2012 might not make it to my driveway

[Humvee21]

Just be careful because you may be penalized for paying off your loan early.

 

[SoSmoked]

How would you get penalized?

 

[Humvee21]

In some cases, there are restrictions on paying off loans early. You just have to read your loan agreement. If you're asking why, it is because the financial institution you borrow money from is not making money off you (ie. Interest).

 

[comagt]

No one should be getting a car loan with penalties.

 

[swoop1156]

Very true. Good point.

 

[Humvee21]

No one should be getting a car loan with penalties.

Not saying whether they should or should not but I'm just saying that it can happen if people don't READ. You'd think this would never happen but look where those NINA loans got us now? I mean, they weren't cars but pretty much any loan can have a "catch"

 

[JuggNuttz]

How would you get penalized?

also, they like to see that you can make payments. not if you have the money, but are reliable enough to make payments consistantly and on time. so yes paying off loans early and not showing consistant monthly payments can hurt your credit score. you would tink that being able to pay off loans early would help your score... but i guess only loan sharks appreciate early payoffs....

 

[comagt]

Paying off early will not negatively affect your credit score.

 

[Raptoyd11]

You gotta pay for your weed when you pick it up right, oh wait what were you guys talking about?

 

[RaptorScrew]

Just be careful because you may be penalized for paying off your loan early.

I don't know that it is legal any longer to penalize someone for paying off a loan early. That is not permitted any longer.