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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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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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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McWillies t1_iu8rh1j wrote

Replying to gkelbo (#311,875)

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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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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