If you’ve taken a loan from Fairstone, you may be wondering if it’s possible to pay off your loan early. The good news is that it is possible to pay off your Fairstone loan before the end of the loan term.
As a matter of fact, paying off your Fairstone loan early is a great financial move because it will help you save money on interest charges and reduce your debt load. We’ll guide you on how to go about it. keep scrolling!
Related: Fairstone Loan Requirements
What Is Fairstone?
Fairstone is a Canadian financial services company that offers personal loans, home equity loans, and debt consolidation services. The company has been in operation for over 9 decades, with over a million users and counting. Since its inception, it has helped many Canadians have financial peace of mind by helping them manage their finances. Fairstone offers unsecured loans, which means that it offers collateral-free loans. Fairstone loan duration ranges from 6 months to 5 years. The loan amount that a customer can take from Fairstone is not fixed; it varies and ranges from $500 to $35,000
Why Pay Off Your Fairstone Loan Early?
Even without being told, we know that there are many reasons why you should pay off your Fairstone loan early. First and foremost, paying off your loan early will help you save money on interest charges. As we all know, when you take out a loan, you’re typically charged interest on the amount you borrow. Hence, the longer it takes you to pay off the loan, the more the interest will accumulate over time. By paying off your loan early, you can reduce the amount of interest you’ll pay and save money in the long run.
Another reason why paying off loans early is good is that it will help you reduce your debt load. For instance, if you have multiple loans or credit card balances, paying off one loan can help you simplify your finances and reduce your overall debt. This will invariably help improve your credit score because having fewer outstanding debts can improve your credit utilization ratio.
Finally, paying off your loan early can give you a sense of accomplishment and peace of mind. We all know that being debt-free can be a great feeling, and it can help you feel more in control of your finances.
Can You Pay Off Your Fairstone Loan Early?
The answer is yes. You can pay off your Fairstone loan early before the due date without a prepayment fee. As a matter of fact, paying off your Fairsone loan early comes with many benefits. For instance, paying off your loan early will help you save money on interest charges. As we all know, when you take out a loan, you’re typically charged interest on the amount you borrow. Hence, the longer it takes you to pay off the loan, the more the interest will accumulate over time. By paying off your loan early, you can reduce the amount of interest you’ll pay and save money in the long run.
Apart from that, paying off your Fairstone early will help you build your credit score and build creditworthiness with Fairstone, which will help you maintain a good reputation should you need their services in the future.
How to Pay Off Your Fairstone Loan Early?
Now that you know that it is possible to pay off your Fairstone loan early, you should utilize the benefits accruing from it. If you have decided to repay your loan before the due date, then you have to follow these steps:
1. Reach out to Fairstone
To repay your loan before the due date, the first step to take is to contact Fairstone and tell them that you wish to repay your loan earlier than scheduled. It is now the responsibility of Fairstone to give you the necessary details that will help you pay off your loan. The information you should be expecting should be the exact loan balance and other relevant information as it concerns early repayment of the loan.
2. Calculate The Amount You Want To Pay
After getting all the necessary information from Fairstone, the next thing is to calculate the exact amount you want to pay off with the interest accumulated to ensure that there is no difference in the amount. If, after the calculation, the amount corresponds, then you should get ready for the repayment.
3. Make The Payment
Finally, after getting the necessary information from Fairstone and calculating the amount, you can go ahead and repay your loan. During this repayment process, you can use any of the payment options available at Fairstone, like paying in person at a Fairstone outlet, mailing a check to them or through online banking.
Conclusion
Paying off your Fairstone loan early is possible and it is a great way to save money on interest charges, reduce your debt load, and gain a sense of accomplishment. Fortunately, Fairstone allows early loan repayment without any penalties or fees, so you can go ahead and repay your loan before the due date if you’ve got the means.