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5 votes
Assuming there are no prepayment penalties, paying more than your monthly car payment can _____.

2 Answers

5 votes
Paying more than your monthly car payment requires, will over time reduce your principal balance.  This will keep your credit score good, and pay off the car early.
answered
User Ramis
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4 votes

After buying a car, paying more than your monthly car payment can help you reduce the principal you owe. It will also allow you to avoid paying interests for long. This way, you will be able to pay your car faster, avoid losing money and maintain a good credit score.

answered
User Quinten
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8.8k points
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