Don’t Ever Pay Off A Loan Early (And When You Should)
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- Опубликовано: 16 июн 2024
- In this video, I will share with you why you should ever pay off a loan early and when you should. All my recommendations 👉🏾 bit.ly/naamwynn
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Have you ever did a review on chime?
I’d rather pay off my loan early than worry about a dip in my credit score.
I pay off all my debt early and it does NOTHING but help my score…. I’m one of those ocd ppl that are constantly looking at their score every 20 mins on the Experian app and I’ll tell you that it doesn’t hurt your score to pay off early…it’s a myth….. he probably got paid by certain companies to make this video lmao so they can hit ppl with more interest
I just paid off my credit card debt and a small loan (>7500). I'd rather have zero debt and a poor credit score than huge debt and an average credit score.
Just an update... My score shot up over 100 points because I paid everything off. It took a month to show up, but a lot better than carrying a debt for another month.
I totally agree with you! Zero debt is the best.
Well said. I'm debt free besides my new car auto loan of of 7,693 out of 27,693 for a new 2022 Elantra.
I feel the same way, just paid off a 10,000 card that I had since 2009 and paid it off in 17 months, I am done with credit cards
Yeah see if you still say that when your asking for another loan and cant get one 😂😂
Screw credit. Pay it off. You don't need the loan. You need peace
At 34 years old I finally feel ready to settle down long enough to buy a house. Unfortunately due to previous horrible stupid life decisions, I'm forced to start with a zero balance in my savings account. On the bright side, the huge amount of debt - consequence of those bad decisions will be payed off next month! 🥳 It's never too late to start saving like there's no tomorrow, and I'm really REALLY excited and motivated. Oh and Graham, fyi my emergency fund is also a done deal! by This name below team lol, i didn't made it myself
It's been a year since your comment. Hope everything is going well for you.
Great video! I paid off my house and debts and my score when down 100 points. But having a paid off home is worth every penny. Just subbed to your channel!
I paid off my student loans and my car early. My credit is now 790, it’s a temporary ding but will rebound quickly so I say go ahead and pay off those loans early and don’t worry so much about your credit score bc as long as you continue with good financial habits your score will rebound and go even higher
Did it rebound without you taking out a new installment loan after or having any other existing installment loan active? And how quickly did it rebound by itself? Thanks in advance!
How long does it take?
Your lighting is A+, my friend.
I have 2 chapter 13’s that are dismissed. The reason I have 2 is bcz I did n+ot use an attorney. I was trying to stop an eviction, but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later, I ended up losing my job. They are scheduled to fall off in January and March 2021. Since I’m looking to purchase a home soon but still there. I am currently enrolled in This name below and I must say, I am loving it thus far. I’m doubling it up with your podcast videos and learning A LOT! Thank you. I’m ready to join the millionaire club!!!
BAD KhenCorp⨀COM
How long it take to drop off
As always excellent content from Naam, my fellow military veteran.
I'm not letting 3 credit agencies determine my choices
VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but this name below info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well
BAD KhenCorp⨀COM
Good advice! I like your strategy to boost the credit score. Ultimately I'd like to be debt free.
W h a t s app - two, six, zero, two, zero, three, zero, nine, zero, nine
Wuz up Namm..great content 👊🏾
you’ve been doing since we meet, surely coming back for more my life
Thank you for the breakdown
Well damn , this what I need to know about!!! I was gonna pay off my auto ….glad I tune in on time just couple of hour late…Thank you for this great information u make my days 🥰🥰🥰..👍👍👍
No one does better than Daveramseytech v*i*a tele - gram
Just the video I was looking for
the short term affects of your credit score dropping is never going to be worse than not being in debt. Pay off your loans early. They never talk about the positives. If all you care about is a credit score don't pay it off. But if you want to live a life, not worry about your next payment constantly, feel more free and in more control and actually own what you paid for, just pay everything off. Money isn't complicated.
Thank you for this!
Very true, done this 4 times in 4 yrs and each time took a huge hit on scores.....30-50pts
Great info.
Learned something new here! New subbie.
Awesome! Thank you!
I never thought about that… Here I was trying to pay my car off as fast as possible (literally every spare penny) but inflation is at 6% my interest-rate on my car is 2% so thinking about it and throwing money away paying it off early so thanks for pointing that out.
Great content brother. Semper Fi
@@barbarap.bishop195 absolutely. However, the credit bureau’s will annotate in the remarks on your file that “account being managed by debt management company”. THAT is what they don’t tell you. And THAT can sway the judgment of creditors. What is being shared in this video is the way someone is truly assisting the individual to get it right.
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I just paid my last student loan this week for 14300 to finally be debt free. My current score is over 800 so I will take the ding. I’m going to save more now for my future house. So future debt will come but for a while I can breathe debt free 😁
How much did it drop
@@Iammarlonbrown payed my personal loan off (not early) and my credit went up to 810 from 780. I also have a student loan and truck loan open as well atm. I’d rather invest my extra money and keep a consistent payment. Works for me anyways hope that helps you!
Thanks just got a 3 year loan from AX and I think I will keep it for the term
Awesome content credit 102
Yea Navy federal gave me a really high limit. I applied and was denied at first so I got a service from this name below, and I was approved for a capital one. The limit was so small lol but I took it and worked on it. Because if that it helped my credit and I believe that’s what made me finally get approved for navy fed with such a high limit. they're still working on increasing the capital one since it was so low. All in all I’m satisfied.
As of right now since I am young and credit is around high 600 low 700s I choose to continue building my credit later down the road will forsure want to be debt free
Thanks for video
Your credit score is equally correlated to how much money the system can syphon off you. People gotta stop throwing money away to keep their score.
Thank you 😊
i APPRECIATE ALL YOUR SAGE ADVICE MY BROTHER!!!! GO ARMY!!!! ;) lol
got it. so ima gonna pay my truck down to owing $50 remaining, but then pay off ALL of my credit card debt to $0 balances. thanks for telling me this i plan you apply for a home at the end of this october
I thought this too but can this legitimately work. Wouldn’t it still hurt you when buying the house because you’ll have active Debt on a Car loan?
Ok ill keep paying interest and losing money.. and Ill get different kinds of debt cuz credit score likes that.. few car loans a
student loan handul of credit cards a mortgage ... yess I will swim in debt and pay thousands in interest so I get a nice big credit score yayy!!
This video have myself in mind. I have currently 2 student loans. It was said September 30th of this year student loan repayments starts. But reading a few articles about student loans, they have been pushed back again January 31rst 🤔. Either way I'm going 2 pay mine off 💯. So I can have less debt in my name. In regards 2 getting a 🏡 in the near present The last installment loan I had from my credit union. Their wasn't a penalty to pay early 🤝
Bother - may I suggest you make This below name correlating this to the Chinese Credit Scoring System; you know, the system where an entire nation's people are enslaved by their government over systems exactly like this? We need people who have influence to bring to light these types of correlations to get people asking and thinking or we will see ourselves slip into a tyrannical nightmare
Bad khencorp
That is why you get a credit card, lock it in the bank portal, and forget about it. Use another CC for perks which could require a different card frequently to get better perks. As that locked card account ages, you will get credit for average account age. You can't just get a CC and not use it which is where the second CC comes in.
Mine was 9.9% interest and only had 4k left on a 10k loan. Didn’t wanna keep paying interest on something I can get rid of and also it raised my credit enough over the 3 years I think I’m good
Early I’m at 760 I know a hit will come but it will go back up in a few months
paid all my debts… except my mortgage… now im around 811-820 score
How do you calculate the interest you’ll pay if paying off a loan early. I’m considering taking a loan but want to pay it off early due to high interest. Hypothetically if it was a 5k loan with 20% interest I’m curious how to calculate how much I’d actually pay in interest if I paid it off in 2 years vs 4
I have 5 credit cards that are all paid to $0 each month religiously. I am a co-signer on a student loan that is paid on time. I have a $10K balance left on my vehicle and came into some cash and wanted to clear this for the next year and pocket the monthly. My Credit Score is 790 but can't seem to breach 800. Would paying off the vehicle alter my credit score or should I ride out the payments for the year. Once paid off , does THAT cause a change in my Credit Score too?
does the same apply for business credit? vs personal credit? im starting a business. and i have liquid cash, im thinking about taking out a loan, just to pay it back before the fees apply. with the goal of building on my credit. not sure if doing this will set me back
One thing i can say is i took a loan higher than the consolidation of my credit card and my score jumped 50. So it depends on the reason for the loan as well
I went the full 6 years with my auto loan. Finally reached the payoff date and my score dropped 54 points from that account being paid in full. I did not pay it off early . It sucks
You stating this made me decided to pay my car off early anyways besides the point lenders can see on time payments anyways and that helps a ton ton
So if i pay off my auto loan which only has 6300 left on it ....will my credit score still go down if i have student loans still being payed off? And if I pay 90 % of my auto loan would the next payment be due the next month. I was a little confused on what you said.
I would do half
Pay loans half down to optimize credit first
Then pay off
Being sure to have other loans on my y
Hi I wanted to ask u have made a vid about jobs that don’t require SSN and don’t need high school diploma? I want to help my brother because he didn’t have the opportunity to finish school and I want to help him out. Plz let me know this isn’t possible 😅
I’m planning on getting a new motorcycle with a loan amount of $7500 after putting $2,000 down. It’s for 72 months so my payments will only be $132. I owe the same amount left on my truck but the monthly payment is $420. So my plan is to open the new loan and pay off the other to help my debt to income ratio while also keeping my loan amounts and types the same. ( I have $20k in the bank currently )
Do you know if your credit score may still take a hit because the loan of your truck (although paid off/ now closed) was much larger than the loan of your motorcycle (new installment loan)? In other words do they care you closed a huge loan? Or so long as there are ongoing installment loans regardless of amount, your score will not drop?
If you took out a personal loan and decided to use 50% to pay down debt, does you putting the other 50% back towards the loan balance shortens the time to pay off the loan or just extends months out that you wouldn't have to pay
This happen to me wish I didn't pay it off, cause it was doing amazing to my credit n wasn't a bother to me.
WORDS ARE NOT ENOUGH TO EXPRESS MY GRATITUDE TOWARDS YOUR KINDNESS TO OUR FAMILY this name below WE ALL SAY THANK YOU VERY MUCH
Bad khencorp
I have a car loan from 2021 for 6 years. I've paid it down to $822 this month. I have 2 credit cards as well. I would like to buy a house next year. Is it best to see if I can stretch that $800 out for a year so my credit doesn't take a hit?
I left $250 on my self credit builder secured card I really want to switch it to somewhere else or to another secure card I'm not saying that self is bad but I really want to change the secured card I don't want to pay any more interest fees like I said I do have $250 on the card that I'm not touching but instead of having self I would like another secured card or something. What do you think 🤔
I want to pay off a personal loan early and I still have a auto loan active and in good standing. I've got 100% on time payment history. Will it drop my score if I pay off the personal loan early? I've done this once before and if I remember correctly it increased my score a little.
I just paid off my motorcycle loan and it didn’t change my credit score, probably because I still have a car loan. I think I will pay off my car 1.5 yrs early even if it drops my score, I’d much rather have zero debt. I already have a mortgage anyways and of course I will of just paid off my car….so I wont be needing a loan any time soon anyways. My score is 771, even if it drops 15 points it’s still good enough.
Nothing trumps peace of mind of being debt free. Pay it off!
I have 2 car loans, two credit cards. I’m looking to get a personal loan that costs only a little more than one of the car loans per month and pay that loan off completely while also paying down both credit cards to 30% utilization or less. How much could this affect my credit score?
It will likely initially take a hit from the loan being approved but once you get your utilization to under 30% it will shoot back up.
Very odd how it temporarily penalizes you for paying it off early. But it makes sense. 🤷🏼♂️ Although it seems backwards sometimes.
True.
So true, it is a bit backwards from our perspective. It took me a long time to get how credit scores are more about whether we're a good investment for the bank than our actual good or bad financial habits.
Look up daveramseytech via tele - gram
Some lenders have no pre payment penalty so you can pay off early
Yeah that’s why I’m 💭, if U pay it off shouldn’t your score increase ✅ this is weird when I first had this discussion.
Hello. I paid Down my loan and have about $40 left on it in principle for the next 36 months. But my payment amount that’s due hang updated? It’s still at $72+ a month. How can I fix this? Do I contact the credit bank to change my amount or what
I was at over 700 credit score and then I lost my job and maxed my cards I can pay it off in a few months but I don't know if I pay it all of at once if it'll go bk up a lot or a little vs taking my time
Whould paying a year worth of payments at a time a bad idea?
Just finished paying off a car loan a couple months earlier then what it would have taken. Score dropped 30 points. I also just paid off a personal loan so I'm worried if that will drop it even more. Was in the 800's so it was a gut punch to see it drop that much.
This is honestly disappointing, they punish your if you do the wrong thing and also punish you if you do the right thing, it’s flawed.
I plan on paying off a car loan 1 year early. My score is in the 790s do you think my score will drop more than yours (30) because I’m paying off an entire year in advance? Or do you think the penalty is around (30-40) regardless of how early you close an installment loan.
@@GWDell No way to tell. My score did go back up two months later, but the drop was not cool lol
I have my car loan and a credit card
Is it bad if I pay my car off early???
I think it's good advise, I read threw the comments to see other peoples opinions...Most opted to pay off their debt immediately and settel for poor credit rather then a better score and while that advise might be good for say.
And 85 year old whom will most likely not need any future financing for house repairs for flooding, fire, tornados, vandalisum, a morgage?...a new or used vehicle....The fact remains our lives are always changing and we are always looking to improve it...So you paid your loan off your debt free but find that you now pay an 8.5% interest rate on everything from fuel, to food, to clothing....You may in fact find yourself needing another personal loan soon to make up for the cost of living increase your raise doesnt make up for...but wait it gets better...now you have a poor credit score...So you have to take peoples advise with a gain of salt....It may not apply to you and making a small monthly payment may actually turn out to benifit you later...or maybe the unlikely will happen and the Fed will drop interest rates to a zero interest rate 0% for another 10 years dispite the massive 200 Billion dollars they owe....🤣-When Pigs fly....good Luck with that Loan application kidz.
This has just happened to me...my score dropped 44 points 😫😫 I was at 821!!!
Ouch. Give it a few months it will climb up again.
I dropped 61 points but it only took 4 months to bounce back!
That’s krazyyy
So…one year later would you rather still have that debt?? Lol..I’m sure your score went back to over the past 12 months and now you have no school loan debt…this was dumb
Seem like there is a certain amount of credit you want to to pay off to benefit your credit.
Odd question, what about a lease program for a car? Is that the same as a loan to the credit agencies?
Yes, its an installment loan
W h a t s app - two (2) six (6) zero (0) two (2) zero (0) three (3) zero (0) nine (9) zero (0) nine (9)
What is I need to pay my car to buy a new house
Credit is a myth…a game that we’re forced & accustomed to play.
Tell me more?
I have a student loan at zero interest, 10K.
And a Loqbox account for 1.2K.
Suggestions for keeping installment loan in my mix.
Since you have the student loans you should be fine with extra installment loans
How did you get a zero percent interest student loan??!? 😳 Through what company
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@@kellishort3581 ... no what's app for me.
You can chat me on messenger 😉
I bought a new car and got a $2,000 rebate to finance. I paid 90% of the loan balance the first month. Then I merely paid $100 per month until it was paid off. Saved a bunch of interest, got a rebate and added to my positive credit history. Car dealers will often give you a better price if you finance through them and most loans do not have a prepayment penalty. There is no advantage to pay cash.
I just did this and it went down 50 point s
I paid off two thing and my credit score went down 40 points
I’m aiming towards applying for a home loan in 2023. With at least 40k saved towards the home. I just approved for a personal loan of 7k to consolidate my debt. Which I used 4k to pay off all my revolving accounts. Would it make sense to take 1000 and use it towards the personal loan? There’s no prepayment penalty. Thanks guys
I would say yessss ! When purchasing a mortgage you want to make sure everything is paid off...0!!!!
Don't need 40k...should have just used that to pay off debt! ;)
If you have a $1000 emergency Loan at 95% Apr idc who you are. Pay off that loan
Financial system built on debt
Credit = Debt ability
So my score is 779 I just got a loan from Klarna for $5,600 0%( APR) I still have $1400 on my Amax if I was to pay off my Amax do you think my score will drop even tho I have a 0% (APR) rate on my loan?
Do you have the answer, I have the same question. Don’t think your score will drop if the loan from klarna isn’t truly considered an installment loan, regardless of APR.
Paying it down will benefit you more than paying it off.
What u mean by paying it down
Do you repair credit and if so how do I get in contact?
@@barbarap.bishop195 thank you!
I’m not taking on any clients currently, most people in the comments are spam
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Which is better, 1% or 2% utilisation?
1%
Semper Fi
My score dropped by 40 points for making a 3k payment on my Citi Costco card , what did I do wrong?
*Did you pay it off completely?*
You might have paid it after Citi reported the statement balance to the bureaus. If the balance is still low next month, your score should go back up.
ME2 I rather be debt free and peacefully happier. 😂..No more Nightmares..obout debts ever again
I did pay off my car waaaaay before due date and my credit score remained the same lol
You must have other debt
@@makinzie8793 nope tbh, not at all, no student debt, no mortgage as well lol
Okay, so I have a 5 year personal loan, I have been paying it since 2018, my balance is 1,000 now. My goal was once I hit 500 to pay it off completely!! So you are saying keep paying the balance till it's done, so my credit score won't go down?
Why worried? Dave is helping. D m W h a t s app - two (2) six (6) zero (0) two (2) zero (0) three (3) zero (0) nine (9) zero (0) nine (9)
have turn around now..
Ok
reference its many times over I’m sure no one come close to you with all
Paid off my car two years early and score dropped 18 points instantly. 😡😡😡
The irony right? You’ll get back there
@@NaamWynn whats ur mail
I've paid off numerous personal loans early (since they had no early payment fee) and it NEVER dropped my credit score. It did always INCREASE my credit score.
So I just can't understand where Naam is getting this thought process. I mean, I've never seen it for myself when I pay my loans off early
also, I can not STAND DAVE RAMSEY. That guy is a SCHMUCK
You need a loan? if yes drop a reply . thanks !!!
The Insurance company you promote on here. Ask to many personal and non of they business questions. It's about you and your car, if feel all they need. Not my education, my bank, etc. Just my name, license, info on my car. It's not like I'm getting coverage by them. Just checking prices.
I feel you. Depending on your education, you can get lower rates. Most insurance providers will ask something on the lines of this.
Dude ur hot and it was an honor to listen to you. Not sounding creepy at all I promise. 🙈
Pay it off early fourth of the stupid games
A credit score is the bank's version of a slave chain! Don't be brainwashed and be a modern day slave by listening these RUclips clowns. Carry zero debt and you will come out a winner in the long run! Remember, you're born debt free, keep it that way!
it is a fool's game... the game is rigged lol