They do not. Paid mine off early and no penalty.Does anyone know if Volkswagen Credit assesses a prepayment penalty for paying a loan off early?
No. My brother knocked out his R payments in about 18-19 months. No penaltiesDoes anyone know if Volkswagen Credit assesses a prepayment penalty for paying a loan off early?
Pay it off early if possible. You'll save money on interests payments.I’m curious to know if there is any drawback to paying of a credit line earlier. I don’t know much about credit but I always heard that what’s important is time of credit and on time payments
Recently paid mine of early and didn’t see a drop on my credit report. Eliminating the debt reduces your total balances (revolving credit + fixed loans) which is a factor in credit score. General the lower your total balance the better.I’m curious to know if there is any drawback to paying of a credit line earlier. I don’t know much about credit but I always heard that what’s important is time of credit and on time payments
I paid mine off early and it wasn't necessary to tell them to apply the extra I was paying every month to the principal. They do that automatically on car loans. It's home loans you have to make sure they apply the extra to the principal.Make sure the extra payments are going towards the loan principal. I think that is a configurable option on the site.
There are lots of things that go into calculating credit score, but in general, on-time payments are vital as is the amount of unused credit. Paying off a car loan early shouldn't affect your credit negatively but you should decide if the cost of credit (the interest) outweighs you having liquidity or investing your money - that questions comes up when you have 0% or.9% interest and can get a CD for the same amount of time that pays more.I’m curious to know if there is any drawback to paying of a credit line earlier. I don’t know much about credit but I always heard that what’s important is time of credit and on time payments
Paying off a collateral backed installment loan early should not affect your credit score. If anything, it will bump it a bit because your total amount of outstanding debt has been reduced.I’m curious to know if there is any drawback to paying of a credit line earlier. I don’t know much about credit but I always heard that what’s important is time of credit and on time payments
If your interest on your auto loan is lower than you can earn by investing, then it is net beneficial to not pay off your loan early. For instance if you could make minimum payments, then put the additional money you would have spent into an index fund, you would likely come out ahead over time.I’m curious to know if there is any drawback to paying of a credit line earlier. I don’t know much about credit but I always heard that what’s important is time of credit and on time payments