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Say if you took out a $5-10,000 loan from the bank. If you paid that off over like, 2 months, would you still have to pay interest on it? Or does APR only apply per year?

Say if you took out a $5-10,000 loan from the bank. If you paid that off over like, 2 months, would you still have to pay interest on it? Or does APR only apply per year?

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[–] 0 pt

It's been a while since I've had to deal with loans, but a 10k loan over 5 years is going to cost you a lot more than just $500 interest over the 60 months of the loan.

The penalty for early payment is forcing you to make up for what they were expecting to get in interest and the credit score hit is to stop you from bothering them in the future.

[–] 0 pt

10k was just an example and I get that they want what they were expecting.

Guess the punihsment way to go is the best explenation.