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Repaying A Loan Early

Pay it off sooner, pay less interest. It's your legal right.

Interest is charged for as long as you owe the money, so every month you knock off a loan is a month of interest you don't pay. The law lets you pay off a personal loan early – all of it or just some – whenever you choose.

Quick Loans mascot holding a piggy bank

Two Ways To Repay Early

Everything

Settle in full

Clear the whole balance in one payment. The loan ends there and then, and you save all the interest that would have been charged for the rest of the term.

Some of it

Partly repay

Pay off a lump sum when you can. Depending on the lender, this either shortens your loan or lowers your monthly repayments for the rest of it.

How To Do It

  1. Ask your lender

    Contact your lender – not Quick Loans – and tell them you want to settle all or part of the loan early.

  2. Get the figure

    The lender must give you a settlement figure in writing, showing exactly what to pay and by when.

  3. Make the payment

    Pay the amount by the date given, using the method the lender tells you.

  4. Check it's closed

    Ask for confirmation, then make sure your credit file shows the loan as settled.

The Rules In Plain English

  • Up to 28 days' extra interest. When you settle, a lender is allowed to include interest for up to 28 days after you ask. Your settlement figure will show it.
  • Early repayment charges only apply to bigger sums. A lender can only ask for compensation when you repay more than £8,000 early in a 12-month period – so it can never apply to loans of £100 to £3,500 like those arranged through Quick Loans.
  • No reason needed. You don't have to explain why you want to repay early.

Repaying early can also help your credit file, as it shows a loan repaid as agreed. Our APR guide explains why the total amount you repay is the figure to watch.

Quick Loans Mascot Speaking

Repaying Early Questions

Is it worth repaying early if I've nearly finished?

It still saves interest, but less, because most of the interest on a loan is paid in its early months. Request a settlement figure from your lender and compare it with your remaining payments.

I borrowed and no longer need the money. What can I do?

Within 14 days of signing, you can withdraw from the agreement altogether by repaying the money plus interest for each day it was in your account. After that, you can settle early at any time.