Hello everyone! I am seeking advice on which route to take for paying off my car loan. FYI I live in Queensland, Australia. My credit rating is below average due to some poor choices in my younger years. My goals are to become debt free and raise my credit rating to increase my chances of getting a home loan in the (hopefully) near future.
Starting finance value was around $31,000. I have about $17,500 AUD remaining. Interest rate is 11.9%. Loan term was 5 years, commenced in July 2017. Current repayments are $174.95 per week.
I earn an average of $1550 per week, with total weekly expenses being $680.
Current savings is about $2500.
I read recently that paying out a car loan early can be detrimental to your credit rating, as future lenders don’t see early payouts as ideal. Does anyone have any information about this?
Part of me wants to just put every spare dollar into paying out the loan ASAP in order to stop paying interest and have an extra $175 back in my pocket each week. However, if that would lower my credit score even further I wonder if I should just make extra repayments each week in order to bring it down faster. If I pay an extra $150 a week, I worked out that should pay the loan out in about a year (roughly).
Any advice on what would be the best approach to achieving my goals?
Thanks in advance!
Submitted August 28, 2018 at 02:34AM by timtim2213 https://ift.tt/2BSNYVt
