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Is it smarter to pay off your car loan over the term or pay part of it off with a lump sum?
"I recently won some money at the casino and I want to do something fruitful with it.
I was thinking about putting a large amount of it to pay down my car loan, but I don't want it to affect my credit.
Is it smart to pay off a portion of your car loan with a lump sum payment?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Paying down a loan is always a financially savvy move, especially if you came into the money at a casino.
Making a lump sum payment won’t affect your credit. All it will do is allow you to pay less interest over the life of the loan. Your monthly payments won’t change; just the amount of time it takes to pay it off.
Overall, it’s a great move instead of putting it all in slots.”
View full answer
- Gregory R.
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