Fast Loan

Fast Loan

For many borrowers, a fast loan means quick approvals. For others, it means a loan that they can pay off in a relatively short amount of time. Meanwhile, some consider fast loans to be limited-offer loans with competitive comparison rate options, lowered requirements, or waived fees.

No matter which type of borrower you fall under, there’s a general throughline between the three: borrower’s convenience. How do fast loans affect your credit score, though?

Let’s find out.

Will paying off a loan early help improve my credit score?

When we think of ways to improve our credit, paying off simple cash loans early is a widely acknowledged means of doing so – and generally, this is correct. It just depends on when you pay off a short-term loan ahead of schedule.

Did you know that early closures on your easy quick loans uniquely affect your credit history? It’s one reason why credit providers charge an early repayment penalty or a hefty one-time fee to cover any future early repayments.

How your loan’s lifespan affects your credit rating

One of the key points in your credit history that credit providers look into is the age of your loans. This is called loan maturity, and it’s determined by the date you completed your loan payments compared against the final payment date in your loan’s repayment schedule.

Loan maturity is important to credit providers because it gives them a solid reference on your long-term repayment habits. It’s also why most long-term loans are scored higher compared to shorter quick low interest loans or overnight personal loans. When you pay off a longer-termed loan prematurely, you may bring down your credit history average, leading to a less healthy score than it actually should be.

You may also be charged or levied early repayment fees for paying your loans early. Depending on your loan agreement, your credit provider may demand additional fees for paying prior to or beyond your schedule. These charges and penalties can add up, costing you any potential savings on loan interest.

If you feel it necessary or prudent to repay a fast loan earlier, contact your credit provider first and ask about any such fees and if they could be waived. Alternatively, if you haven’t committed to a credit product yet, consider applying for a fast credit loan with a lending platform that offers credit without early repayment fees.

At SocietyOne, we value initiative. That’s why we don’t require our clients to pay any monthly fees or early repayment fees when they apply for quick loans with us – what is disclosed in your loan agreement is what you owe. This gives you the freedom to manage any advance payments more comfortably and without penalty.

Does a higher credit score help lower interest rates?

Yes, it does – many credit providers offer lower interest rates or more attractive fast loan benefits to borrowers with strong credit ratings.

Keeping your credit score healthy gives you more advantages than just quick approval for a fast loan. They also give you an edge with heftier credit, like loans for renovations or consolidation loans. Having a bad credit score could also mean being on a waiting list for desired properties or losing great purchase deals to other interested buyers with much higher scores.

Higher credit scores also mean more competitive rates. Here at SocietyOne, we believe that good credit scores should be incentivised with fair loan deals. The better your credit rating, the more robust our loan offers – just check our personal loan repayment calculator for a comparative estimate.

Can I negotiate the terms of my fast loan online?

When a credit provider is amenable to negotiating loan terms, you should give it a try and appeal for a fast loan better suited to your needs. Not all credit providers stick to fixed loan offers every time – some give their borrowers more competitive interest rates or adjusted loan terms compared to their initial offers. They’re just waiting for you to ask.

If you want a stronger advantage for fast loan offer negotiations, we suggest bolstering your credit profile. The best way to do this is to first understand where your credit score stands.

It’s never too early to start building good credit

SocietyOne offers a credit score review service for free through our Credit Score tool. Through our reporting partner Experian, members can also preview and track their credit score’s progress as often as they feel is necessary – all for free. We also have a club that gives members unlimited access to valuable credit management resources, such as insights on your credit history and loan best practices.

The membership is free to all registered clients; interested users can sign up for an account through our website or our mobile app. It’s also obligation-free, meaning you’re not required to have an active fast loan product or online application to be able to join.

We encourage you to take advantage of this service even if you’re not committed to a SocietyOne personal loan or online application just yet. Knowing is half the battle, and in the land of credit, your credit score determines if the odds are in your favour.

Discovering strong credit options at SocietyOne

SocietyOne is a licenced and registered credit financing platform that has served thousands of clients since we first started lending in 2012.

As we continue to win awards for credit offerings, we also continue to strive for excellence in the coming years. After joining the publicly-traded MONEYME Group in 2022, we’ve diversified our products to include consumer lending investment. This gives interested clients the chance to invest in loans and earn through personal credit products, like green loans, holiday loans, and motorbike loans.

Grab the opportunity to make the most out of your credit. Apply for your first SocietyOne personal fast loan today!