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Posted in Auto Loans
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Question By
Betoasaber

5 Contributions
3 People Helped
paying the maximum would make me save money on my car loan?
My minimum payments are 554.31 and the maximum are 1600 i have 69 remaining payments to do and i want to finish this as fast as possible because in two years we want to buy a home.Paying the maximum would save me money and help my credit?

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Top Contributor
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Most Helpful Response

Check with your lender.

Helpful to 1 out of 1 people

If you can afford the maximum payment, and there is no penalty for paying early then by all means pay it off sooner. No need to pay an extra 4 years of interest.  If they charge penalties then you need to do the calculation but i bet even with the fees it would be less than the interest you'd save.
Another option; if you can afford the larger payment, You would probably qualify for a short term personal loan at a similar or lower interest rate with higher monthly payments and pay off the care note.  this would also increase the number of accounts on your report. That always helps. 

As far as helping your credit, it would be a trade off on the available credit and the larger payments won't make a big difference but showing paid off accounts is always a good thing.

Good luck

Reply by
Betoasaber

5 Contributions
3 People Helped

Thanks a lot Eddy. How can I find if there are penalties for paying the maximum?

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