Paying off my car loan early?

GeorginaPeace

Hello All,

I currently pay £100 a month for a car loan, I still have £3000 to pay.

I have more than enough savings to pay off this debt, and was wondering whether I should? I changed my address with the car finance company yesterday, and they offered me a settlement figure of £2300.

I would really like to improve my debt to income ratio, but at the same time, paying the £100 a month is showing lenders that I am reliable when paying back a loan. I am unsure what option would be best.

Any help would be appreciated.

Thanks.

[Deleted User]

Unless you're getting more interest on your savings than you're paying for the loan, pay it off.

To build a credit history, use a credit card and clear in full each month.

MallyGirl

if you pay it off that will show on your record as a completed and closed account which is a good thing. Don't pay interest unnecessarily

bengalknights

I would pay it off, if your credit building a sim only deal or basic credit card is more useful.

ratrace

Let me put it another way, how would you feel if your employer underpaid you by £20 - £30 a month every month? you would be peed off right, well thats what you are doing to yourself every month untill its paid

Get it paid, you work too hard to make others rich