Taking out a loan is a big financial decision. While getting quick cash may provide temporary relief, loans come with interest and payments that need to be made on time. For many borrowers, the goal is to pay off the loan as quickly as possible to avoid accumulating additional interest charges. So a common question is – can you pay off a Spotloan early?
The good news is that Spotloan not only allows early repayment, but actually encourages it! Keep reading to learn everything you need to know about paying off your Spotloan ahead of schedule.
What Is Spotloan?
Before diving into early repayment, let’s first go over what Spotloan is. Spotloan is an online lender that offers installment loans which are different than payday loans.
With a Spotloan, you can borrow between $300 and $800. The repayment terms range from 3 to 10 months. A key difference between Spotloan and payday loans is that Spotloan allows you to pay back the loan in installments over time, rather than having to pay back the full amount plus interest in one lump sum on your next pay date.
Spotloan also reports loan information to credit bureaus, so responsible use can help build your credit They offer competitive interest rates and transparent terms and fees
The Benefits Of Paying Off Your Spotloan Early
Paying off debt early is almost always a smart financial move. Here are some of the biggest benefits of paying off your Spotloan ahead of schedule:
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Save money on interest charges – Loans accrue interest each day your balance remains unpaid. By paying early, you reduce the total interest you have to pay. This can result in hundreds of dollars of savings.
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Pay less overall – In addition to interest, Spotloans come with origination fees and other charges. When you pay off early, you reduce the total amount you pay the lender.
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Improve your credit – Making on-time payments helps boost your credit score. Paying off installment loans early demonstrates financial responsibility.
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Free up cash flow – Getting a loan off your plate sooner frees up money in your budget for other goals like saving up an emergency fund or paying off higher interest debts.
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Peace of mind – Becoming debt-free reduces stress and gives you financial freedom. No more worrying about making payments on time every month!
As you can see, there are plenty of excellent reasons to pay off your Spotloan early if you are financially able to do so. It puts you in a better financial position.
How To Pay Off A Spotloan Early
The best part about Spotloans? There are absolutely no prepayment penalties or fees if you pay off your loan early! This isn’t the case with all lenders, like payday loans that often hit you with expensive prepayment penalties.
With Spotloan, you have multiple easy options to pay off your loan early:
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Make extra payments – You can pay more than your minimum due every month to chip away at your principal balance faster. Even small extra amounts make a difference over time.
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Pay a lump sum – If you come into some extra money like a tax refund or bonus, consider putting it towards paying off your Spotloan in one swoop.
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Refinance – You may be able to get a lower rate loan from another lender to pay off your existing Spotloan. This lets you combine debts into one and reduce interest.
You can make payments by phone, mail, automatic bank draft, debit card, or online through your Spotloan account. Be sure to specify that any extra amounts should go towards the principal to pay off the balance faster.
The Spotloan customer service team is available to help explain your payoff amount or other early repayment options. They can walk you through the process to ensure your payments are applied correctly.
Tips For Paying Off Your Spotloan Early
If you want to pay off your Spotloan ASAP, here are some tips that can help:
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Make a budget – Review your income and expenses to see where you can cut back in order to free up cash to put towards loan payments. Dining out and entertainment are common areas people can reduce spending.
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Pick up a side gig – Taking on a part-time job or freelance work can allow you to generate extra income to pay off debt fast. Sites like Uber, Instacart, and Fiverr make it easy.
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Sell unused items – Do you have any unused electronics, furniture, clothes or other items collecting dust? Consider selling them to put cash towards your loan payoff.
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Negotiate bills – Call service providers like your cable, internet, and cell phone companies to see if they can reduce your monthly charges. Every dollar counts.
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Split up payments – Instead of one monthly payment, consider making smaller payments multiple times per month to get ahead. Automate them to stay on track.
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Track progress – Logging your payments and watching your balance decrease can keep you motivated.
With focus and discipline, you can knock out your Spotloan early. The financial freedom will be well worth the effort!
Frequently Asked Questions About Paying Off Spotloans Early
If you still have some questions about paying off your Spotloan ahead of schedule, here are answers to some commonly asked questions:
Do I have to pay a penalty for early payoff?
No, Spotloan does not charge any prepayment penalties or fees if you pay off your loan early. You can pay it off in full whenever you want.
How can I find out my payoff amount?
Your payoff amount is your current principal balance plus any unpaid accrued interest. Contact Spotloan’s customer support for help determining your exact payoff amount.
Where should I send my early payment?
You can make payments online, by phone, by mail, or with automatic bank drafts. For mailed payments, send checks or money orders to Spotloan, P.O. Box 720, Belcourt, ND 58316.
How soon can I pay off my loan?
You can start making extra payments immediately after receiving your loan funds. Even small amounts help reduce your overall interest costs.
Should I save up to pay in full?
While paying in full is great, you can also start paying extra each month to pay off your loan faster. This builds momentum without waiting to save up a larger lump sum.
What if I can’t pay in full right now?
That’s okay! Even if you can’t pay the full balance today, you can start making larger monthly payments to pay off your loan faster over time. Every extra dollar helps reduce the interest you pay.
Paying off loans early is one of the smartest financial moves you can make. Spotloan makes it easy and affordable to prepay your installment loan. Review your budget, make a payoff plan, and start putting any extra money towards your balance. Before you know it, you’ll be debt-free and keeping more money in your pocket!
How do Spotloans compare to payday loans?
Spotloans and payday loans are completely different. Spotloans are short-term installment loans, which means you pay back your loan over time. With a Spotloan, you choose how long you want to pay the loan back – up to ten months. Plus, you can pay your loan off early with no prepayment penalties.
On the other hand, payday loans are less flexible. When the loan term is up, usually within two weeks, you need to pay back the entire amount.
Why does Spotloan need to verify my identity?
At Spotloan, we care about protecting consumers identities and federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account with us for our services.