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      11-14-2012, 06:41 PM   #1
Crypty
Private First Class
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Drives: '08 e92 M3
Join Date: Jul 2012
Location: NJ

iTrader: (1)

Paying off a loan too quickly?

I financed a large portion of my car when I was fresh out of college and had a well paying job but little cash on hand. It's a 27k 5 year loan at 4.69%. I've been making the minimum payment for 7 months and now I have enough cash on hand to comfortably pay off the balance in full which should save me something like $2000 in interest..

Is paying a loan off all at once like this bad for one's credit? Would it be wiser to make several less huge payments to complete it? Establishing good credit matters to me since my credit history is so short.

Thanks!