So I got a car recently, and the dealer and my parents agree that refinancing will be a good idea soon. How does it make sense for another creditor to buy your credit and give you a better rate? Why would the original creditor not just keep you on the hook for the worse rate?
In: Economics
Someone is willing to make less money by offering you a loan at a lower interest rate. The original loan person is going to be upset they’re losing out on profit by the loan ending early for them. But it’s pretty uncommon they can do anything to stop this. TBH I wouldn’t be surprised if early payoff penalties are legally disallowed on a lot of debt products.
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