Title: How To Pay Off Your Car Loan Fast
Headings: How To Pay Your Car Loan Off Fast
How To Pay Your Car Loan Off Fast
Looking to pay off your auto loan ASAP? These methods can help you greatly accelerate the process and potentially save thousands in interest.
What’s Ahead:
1. Check your credit score and prepayment penalties
Does your credit score justify a lower interest rate?
Does your lender have any prepayment penalties?
2. Refinance your loan
Don’t extend your term to get a lower monthly payment
3. Make a lump-sum payment
Loan Payoff Calculator
4. Restructure your payments
Switch from monthly to biweekly payments
Round your payments up to the nearest $50 or $100
5. Slash your expenses
Get a better rate on auto insurance
Switch to a cheaper mobile phone plan
Cancel (or share) some subscriptions
6. Find extra income
Babysit, pet sit, or house sit in your neighborhood
Sell some stuff
Earn money online
7. Sell or trade-in your car
Consider a trade-in for a cheaper (and better) car
Disclaimer: paying off an auto loan could help (or hurt) your credit
Summary
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About the author
Chris Butsch
Editor’s Note:
Do you know your Credit Score?
Improve Your Credit

Content: If you thought paying off your loan early would be doing your lender a favor, you’d be mistaken. In fact, many lenders will charge you a fee called a prepayment penalty for paying off your loan too early. It may sound like late-stage capitalism, but prepayment penalties actually make sense. Lenders only profit from interest, so if you pay off your loan early, you’re taking away the revenue you promised to pay when you signed the document. They’re entitled to at least a percentage of that lost revenue. That said, prepayment penalties are increasingly less common, as lenders have had to abolish them to stay competitive. Check your loan document and search for the keyword “prepayment” to see if you have one, and make note of it. You’ll use it later in some calculations. 2. Refinance your loan
Refinancing your loan is one of the best ways to pay off your remaining balance more quickly.