Based on all the records, the BKI forms your individual rating. This is what lenders focus on first. If the rating seems insufficiently high, the bank examines the records in more detail.
When you close a loan ahead of schedule, this fact will be reflected in your credit history, but it has little effect on your rating - it improves if your rating was previously damaged by late payments and other negative entries.
The lender can interpret the early closure of loans in two ways:
The fact that you can pay the entire amount in one payment indicates financial stability. The bank may consider you a reliable borrower who always repays debts. Bank risks are reduced to a minimum, the probability of receiving a new loan increases.
Quickly closing a loan may indicate your impulsiveness. There is a chance that you will close a new loan just as quickly. This is not profitable for the bank: it will spend resources on opening an account, processing find your mobile number database documents, and you will immediately refuse the services of the lender, and its investments will not pay off.
It is impossible to predict how a potential lender will react to one case of early loan closure. This factor is not a key one when considering an application. It is much more important that the borrower has low debt load and no delinquencies in the credit history.
There are two cases in which early repayment may negatively affect the possibility of taking out a new loan:
your credit history contains only one loan, which you took out and repaid almost immediately;
You constantly use full partial repayment and immediately close contracts with creditors.
When you decide whether to repay a loan early, you should rely not on the opinions of future creditors, but on your own benefits.
Why it is worth closing loans early
If you pay off the loan in full ahead of schedule, you get the following benefits.
Save on interest . Throughout the term, you make payments that consist of the interest portion and the principal debt. The most common is the annuity scheme, in which the payments remain unchanged. Because of this, at the beginning of the term, the largest part of the payment is interest, and at the end, the principal debt. Therefore, it is more profitable to close the largest part of the debt at the very beginning of the term.