No, paying off an installment loan early will not hurt your credit. However, while it may seem like it would reflect positively on your credit score, it actually has no visible impact.
A record of consistent, on-time payments throughout the life of the loan may be more beneficial to your score than paying it off early, as approximately a third of your credit score is based on your payment history. Furthermore, when you pay off a loan, it is considered “closed” on your report. Open and active accounts are more beneficial to your score, because they demonstrate that you are currently managing credit well.
This, however, does not mean that you should avoid paying off an installment loan early at all cost. If you have the means to do it, it could actually save you a lot of money that you would otherwise spend on interest charges. Just make sure you check with your lender to ensure there are no pre-payment or early repayment penalties.
Also, remember that you can track your credit evolution for free on WalletHub - the first and only website to offer daily updates to your credit score. To start, go to: https://wallethub.com/free-credit-score/.
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