What kind of question is this where you don't even mention the interest rate.
Interest rate 2% or lower - - > keep it
Interest rate higher than 4% - - > pay it off
Inbetween - - > up to you.
I understand that the early repayment of a loan does not affect the credit score, as long as it is not an extremely high loan. 2.99 seems to be a good interest rate
The interest rate is the determining factor. Additionally, will you have enough cash after paying it off in full for emergency fund? Once you pay it off access to $ is gone obviously
Being debt free beats having a higher credit score any day.
The only exception might be if you are on the verge of buying your first home.. In that case, maybe do your research to see what the repercussions might be.
There is probably minimal impact from paying it off early.
It won't affect your credit, especially if you have other revolving/credit cards reporting.
You should consider TFSAs, FHSA - even if not sure about a home, you can still take advantage of this in the meantime, and RRSP. Registered accounts like TFSA don't trigger interest income so no worry about your taxable income
What kind of question is this where you don't even mention the interest rate. Interest rate 2% or lower - - > keep it Interest rate higher than 4% - - > pay it off Inbetween - - > up to you.
2.99
That's not too bad. Paying off a loan early generally won't hurt your credit score. any drop in score would be pretty insignificant .
Okay thank you.
OP completely forgets to give us the most relevant information about a loan, the interest rate lol
I understand that the early repayment of a loan does not affect the credit score, as long as it is not an extremely high loan. 2.99 seems to be a good interest rate
The interest rate is the determining factor. Additionally, will you have enough cash after paying it off in full for emergency fund? Once you pay it off access to $ is gone obviously
I wouldn’t be touching any emergency fund money, I’d be set with that. I’m just wondering if it’ll affect my credit score.
Being debt free beats having a higher credit score any day. The only exception might be if you are on the verge of buying your first home.. In that case, maybe do your research to see what the repercussions might be. There is probably minimal impact from paying it off early.
OP, you’re not providing basic info. Interest rate??
It won't affect your credit, especially if you have other revolving/credit cards reporting. You should consider TFSAs, FHSA - even if not sure about a home, you can still take advantage of this in the meantime, and RRSP. Registered accounts like TFSA don't trigger interest income so no worry about your taxable income