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Overpayment

Credit scores & reports
Paying more than the minimum or scheduled amount on a credit account.

Overview

Overpayments reduce your balance faster and can lower interest costs.

Some loans have limits on overpayments without fees.

Why it matters

  • It reduces total interest paid.
  • It can improve utilisation and credit profile.
  • It shortens repayment time.

FAQs

Can I overpay a loan without fees?

Some loans allow overpayments, while others charge early repayment fees.

Does overpaying improve my score?

Lower balances can help your utilisation, but payment history matters most.

Related terms

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