Is it always smart to pay a personal loan off early?

Personal loans sometimes come with prepayment penalties, which could eat away at any savings in interest. Here’s everything you need to know about early payoff of a personal loan.

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If you need funding, personal loans can provide you with a lump sum of money to be repaid over a set term as closed-end credit.

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Definition and Purpose of Personal Loans

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Can You Pay Off a Personal Loan Early?

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For example, a borrower with a 60-month repayment term may consider paying off the loan in less than 60 months.

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Is it always smart to pay a personal loan off early?

Personal loans sometimes come with prepayment penalties, which could eat away at any savings in interest. Here’s everything you need to know about early payoff of a personal loan.

If you need funding, personal loans can provide you with a lump sum of money to be repaid over a set term as closed-end credit.

Understanding Personal Loans

Definition and Purpose of Personal Loans

The difference between personal loans and other loans is that personal loans have few restrictions on their use.

Can You Pay Off a Personal Loan Early?

For example, a borrower with a 60-month repayment term may consider paying off the loan in less than 60 months.

Exploring Early Loan Repayment Options

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Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.

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