Credit Union Loan Quick Question

[Mail2017]

hi,


I have a credit union loan. The repayments are reducing monthly based on the interest. I've set up a standing order to cover the repayments.

At the moment repayments are about €250/month. I transfer €300. The extra €50 goes as shares.

Would i be better using the extra €50 towards paying the loan? Is there any benefit to me building shares rather than paying off the loan sooner?

I'm in a position where I could probably increase my repayments so would have thought the sooner the loan is payed off the better in terms of minimising the overall interest paid.

Also, how does repaying loans sooner or using lump sum repayments affect your credit rating?

Thanks.

 

[cremeegg]

The interest charged on the loan, is likely much higher than than the rate paid on the shares.