As we mentioned earlier, loans are given on different terms and conditions that majorly depend on the type and amount of loan. In certain cases, lenders allow you to pay back the loan amount before the deadline, hence reducing the interest charges. While in other cases, lenders charge a prepayment fee if you want to pay the loan earlier than the deadline. They do this to prevent borrowers from paying the loan early so they can charge the complete interest rate. Nonetheless, even if you pay the prepayment fee, you will be saving a lot through the reduction in interest rate.
While calculating the overall loan amount, include these charges in the budget. And it goes without saying that the lesser the fee, the better it will be!
As with any form of payment, you have to pay a late fine if you are unable to pay the bad credit loan amount within the given timeframe. No matter the amount of late payment fee, you should completely avoid and pay the loan amount in time to avoid a further decrease in your credit score. Continua a leggere