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Paying off an AIB Personal Loan early - Bad for credit score?

  • 15-01-2020 04:25PM
    #1
    mr_jackapple
    Registered Users, Registered Users 2 Posts: 41 ✭


    I have a personal loan with AIB with a variable rate. I’ve been told that I can make manual repayments in addition to my monthly repayment if I wish without a penalty fee. Also, if I pay it off the loan early, I would only pay interest for the time while I was actually making repayments and not the total loan. So if I pay off a 4 year loan in 2 years, I would only pay 2 years worth of interest.

    Would this be considered a positive thing that I am making early repayments? Or could it be bad for future credit and negatively affect my credit score?

    I’m mainly doing it because if I can pay it off early I would then avoid paying the interest for the remaining time.


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 26,063 ✭✭✭✭coylemj


    mr_jackapple wrote: »
    Would this be considered a positive thing that I am making early repayments? Or could it be bad for future credit and negatively affect my credit score?

    Your credit history will show that you had a loan and paid it off. Which is a positive mark on your record.

    The banks would always prefer if you went the distance and paid them lots of interest but they're not going to give you a negative credit score for paying the loan off early.


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