The person who told you paying it off all at once wouldn't improve your credit rating is correct.

The fact that you have a loan and are paying it on schedule will enhance your credit rating.

Paying the loan off early will not add anything to this (but neither will it detract).

Paying the loan off early may save you interest. Don't pay off the loan and leave yourself short of cash for emergencies though. Pay it off if you can be confident that you won't need to borrow any more before the loan is paid off normally.

You also need to check that there are no penalties involved in early repayment.This might seem a bit of a stupid question but really it's a no brainer, take into account how much interest your paying on the loan (at a guess between, 5-8%, apr… And how much your getting in interest on your savings, probably 1-3% apr. It's an absolute no brainer to me.

PAY IT OFFI think you should consider both the options. means if the amount you owe is large enough, pay off a part of it as a lump sum money. This way the amount you owe would be lowered and you could save on interest. Also improve your credit record by paying off the interest on rest amount by time.

also take advice from CAB. Hope it would be of your use.

 

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