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Posted in Auto Loans
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Ducks2209

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Paying off my car loan sooner options?
I was wondering which is a better option...increasing my car loan payment or saving up the money to pay it off in a lump sum? I can do either one so it does not matter to me I would just like to see if one is much better than the other.

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It will all depend on the current interest rate, the new interest rate, and the length of time until paid off. There are many calculators online to help compare loans. I would check out bankrate.com for some good loan comaprison calculators and credit karma for some good loan rates.

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Financially, Better to Pay ASAP

I am not sure which would be better for your credit score, but from a financial perspective, it is always better to pay what you can as soon as you can.  In loan lifetimes, most of the interest is payed at the beginning of the term.  The faster that you pay off any of it, the less interest you will have to pay, and more of your monthly payment will go towards your principal.  Just search for "loan repayment calculator" online, and you will see what I mean.

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