Early Loan Closure: Does Foreclosure Harm Your Credit Score?

• Foreclosure means repaying your entire loan before its original tenure ends, closing the account and stopping EMIs.
• It generally does not harm your credit score; lenders report the loan as "closed" and settled.
• Consistent on-time EMI payments before foreclosure positively reflect on your credit record.
• Your credit score is primarily influenced by repayment behavior, not the timing of loan closure.
• Consider foreclosure for high-interest loans or peace of mind, but check for potential foreclosure charges.