Title: Will Paying Off A Loan Early Hurt Your Credit Score? | MoneyKey
Headings: Does Early Loan Payment Hurt Your Credit Score?
Does Early Loan Payment Hurt Your Credit Score?
December 13, 2019 by Daniel Azzoli
Will Paying Off a Loan Early Hurt My Credit Score?
Types of Credit and Your Credit Score
Does Paying Off a Loan Early Hurt Your Credit Score?
When Should You Consider Paying Off Your Loan Early?
When Should You Keep Your Loan?
Consequences of a Bad Credit Score on Future Installment Loans
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Written by Daniel Azzoli

Content: When Should You Consider Paying Off Your Loan Early? While there may be times where it might make sense to avoid paying a loan off early, there are also some instances where you could benefit from early repayment. For example, you may be in a situation where you’re paying off a loan with particularly high interest rates. While you might be managing to make all your payments on time, the high interest you’re paying could be squeezing your bank account a little tighter than you’d like. In this instance, it might be a good idea to pay off your short term loans as early as possible if you have the funds and won’t be penalized by the lender. This way, you can avoid having to continue to pay these high interest rates. Another instance where you might want to pay off your loan early is when it comes to revolving credit. With revolving credit accounts like credit cards and lines of credit, you can keep a balance on your account from month to month as long as you’re making the minimum payments on time. Even if you end up paying off your entire balance, the account will still remain open. If you can keep your balance at zero (or very low), this could positively affect your credit score – particularly if these accounts have high credit limits.