FairKash+ Loans
Free
In Kenya V 4.0.2
5.0 (1 million +)
Security Status
for Android
for Android
Free
In Kenya V 4.0.2
5.0 (1 million +)
Security Status
Paying off a quick loan early typically does not hurt your credit score; in fact, it can have a positive impact on your credit. Early loan repayment generally demonstrates responsible financial behavior and can help improve your creditworthiness. Here’s how it works:
Reduced Credit Utilization: When you pay off a loan early, it reduces your outstanding debt. This, in turn, can lower your credit utilization ratio, which is the amount of credit you’re using compared to your total credit limit. A lower credit utilization ratio is generally seen as a positive factor for your credit score.
Positive Payment History: If you make all your payments on time, including paying off the loan early, it adds to your positive payment history. A consistent history of on-time payments is a crucial factor in credit scoring and can have a positive impact on your credit score.
Fewer Interest Charges: By paying off a loan early, you’ll pay less interest overall, which can save you money and make your financial situation more stable. This can indirectly contribute to better financial health, which can benefit your creditworthiness.
However, there are some potential exceptions and considerations to keep in mind:
Prepayment Penalties: Some loans, particularly those with fixed terms, may have prepayment penalties or clauses that impose fees for paying off the loan early. In such cases, it’s essential to weigh the costs of prepayment against the potential benefits to your credit score.
Credit Mix: Credit scoring models also consider the types of credit you have. Paying off an installment loan early can reduce the variety of credit accounts in your profile. This can have a minor impact on your credit score, but it’s generally outweighed by the positive factors mentioned earlier.
Length of Credit History: If the quick loan is one of your oldest credit accounts, closing it early could affect the average length of your credit history, which is another factor in credit scoring. However, this effect may take time to manifest.
Free
In Kenya V 4.0.2
5.0 (1 million +)
Security Status
for Android
In most cases, the benefits of paying off a quick loan early, such as reducing debt and demonstrating responsible financial management, will outweigh any potential drawbacks. Be sure to review your loan agreement for any prepayment penalties and consider your overall financial goals when deciding whether to pay off a loan early.
Free
In Kenya V 4.0.2
5.0 (1 million +)
Security Status
for Android
for Android
Free
In Kenya V 4.0.2
5.0 (1 million +)
Security Status
FairKash+ is approved by the Central Bank of Kenya. Download and use it.
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Contact：+254 796383534
