Title: Top 4 Reasons to Pay Off Your Car Loan Early - CarsDirect
Headings: Top 4 Reasons to Pay Off Your Car Loan Early
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Top 4 Reasons to Pay Off Your Car Loan Early
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Content: While that's easier said than done, early payoff carries some serious financial benefits for you. For most borrowers, it's the smart thing to do. Save on interest
The most obvious reason to pay off your loan early is to pay less interest. What you pay in interest each month is based on your outstanding balance. The less you owe, the lower the interest charge will be. You don't have to pay off the loan completely to get this benefit. You can start saving immediately by making an extra principal payment each month. You can go another route and pay off your loan using a home equity loan. Although this doesn't reduce your overall debt, the interest rates on home loan are generally lower, and in most cases the interest you pay is tax-deductible. Improve your credit score
Reducing your total debt obligation can have a positive effect on your credit score, which will make it easier for you to qualify for a car loan in the future.