In general, it’s much better to have an open-end installment loan than a closed-end installment loan. It could potentially save you hundreds of dollars in penalties. If you pay off a closed-end loan early, you may have to pay a significant prepayment penalty. In some cases, this means you save no money by paying your loan off early. An open-end installment loan has no such penalties and allows you to pay off your loan early to save on interest.