The short answer is yes, you can pay off your loan or payment early without any kind of penalties. One of the advantages of taking out financing through Fortify is your ability to pay off your financing plan early, without incurring any prepayment penalties.
Why is it good to make early payments?
Loans can accumulate interest over time. If you find yourself able to make early payments, paying off a loan balance ahead of schedule is a powerful way to provide financial relief. It lowers the amount of interest you would pay over time, and lets you free up funds that you can redirect towards other financial goals, like saving for a home, investing, or building an emergency fund.
Fortify may report your loan and payment activity to one or more consumer reporting agencies. However, such reporting may be delayed and may not begin until approximately 3 to 6 months after your loan enters repayment.
Making early payments towards your student loans may positively affect your credit score, by demonstrating financial responsibility. If you take future loans out for expenses like a house or car, having a better credit score makes that credit cheaper, which would also save you money in the long run.
Why do some lenders charge penalties?
Paying off a loan early means that your lender doesn’t collect as much interest as they planned. Because of this, some lenders may charge you penalties or fees if borrowers make early payments, in order to make up for the interest that they’re no longer collecting off of you.
At Fortify, we believe that what’s best for you is best for us. If you’re able to make early payments, and you want to reduce your interest burden and potentially improve your credit score, we encourage you to do so. That's why Fortify does not charge any prepayment penalties or fees.