This scheme does not take into account the accrual of interest and additional expenses. The lender may not accept such a payment or accept it but not close the contract. In the first case, you will have to send a new application. In the second case, the borrower will decide that he has paid off the bank, but in reality, interest will continue to accumulate, and penalties for late payments may be added to them.
The decision to close a loan early can be impulsive: the borrower wants to get rid of debt so much that he forgets about other expenses - for example, education, buying winter clothes and shoes.
Any expenses should be planned in advance, taking into account the financial situation and planned expenses. It is better to close only part of the debt than to save on the most necessary things or take out a new loan.
Miss out on the benefits
Free money is not always worth using for early debt repayment. If the rate is not very high and the term is coming to an end, it is more profitable to invest and increase capital. Income from bank deposits gansu mobile number database can be higher than savings on interest on a loan.
Before making a financial decision, you need to analyze the possible benefits and costs. Always leave a safety cushion and do not limit yourself to what is necessary for the sake of quick debt repayment.
Results
Let's briefly list the main facts that every borrower should know:
You can repay the debt early free of charge and at any time, including immediately after taking out the loan. During the first two weeks, there is a cooling-off period, when you can repay the loan without prior notice to the lender. Subsequently, you must notify the bank 30 days before payment, unless other conditions are specified in the agreement.
The fact of closing a debt ahead of schedule is reflected in the credit history, but has virtually no effect on the borrower's rating. It is much more important that there are no overdue payments or outstanding debts.
If you repaid your loan early, you can't predict how a potential lender will interpret this fact. But this factor is not the key one when making a decision on your application.
Paying off a debt early is beneficial because the borrower saves on interest and gains greater financial freedom. The main danger is a sharp increase in the burden on the budget due to a large one-time payment.