How early can I payoff a car loan?

Submitted by gkelbo t3_ygivdj in personalfinance

How early can I pay off a car loan?

I put 8600 down on a car, 7 payments later it was totaled (not my fault) and is about to be paid off by my insurance. Before this I had no credit history other than medical bills, my APR was 23-25%.

During the car loan i had another loan around $280 a month for 7 months, just paid off

Should my credit be much better? I was hoping to get atleast 6-10% APR or less on my next car loan

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Alienrite t1_iu8pzun wrote

Check you score. It’s free and keeps you from guessing. Having successful payment history helps and closing a loan is a neutral note. I would guess your score has improved but with rising interest rates, your probably not going to see the offer you would have expected two years ago

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gkelbo OP t1_iu8qgw8 wrote

Its 702 on equifax, 656 on transunion it was around 650 when i started the payments in march

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McWillies t1_iu8rh1j wrote

Experian (which shows your FICO Score) is the one that matters. Equifax and TransUnion show your VantageScores which aren't as widely used. You can also go to annualcreditreport.com to get a free report from all three bureaus.

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MarcableFluke t1_iu8pxtm wrote

  • You can pay it off as early as you want
  • Your credit isn't likely to improve that much with just 7 on-time payments.
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Kura369 t1_iu8sf40 wrote

6-10% also might be a stretch right now with rising interest rates. You might be able to swing 15% with your history and the state if the world

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Scr0bD0b t1_iu9i4zz wrote

Make sure you try a credit union and don't rely on a dealership to give you a good financing deal...

23-25% is insanely high.

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